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Friday, May 17, 2024

Nigeria: Senate Suspends Debate on Electricity Tariff Increase

The Nigerian Senate has suspended debate on a report on the proposed increase in electricity tariff. The decision was made after Senator Titus Zam, chairman of the Committee on Rules and Business, raised a point of order during the consideration of the report presented by the Chairman of the Senate Committee on Power, Senator Eyinnaya Abaribe.

The Senate also asked the National Electricity Regulation Commission (NERC) to suspend the tariff hike. The decision was based on the committee's view that the suspension would "allow for robust consultation with customers on the various bands on the cost of service instead of heavy reliance on feeder location and duration of service which are difficult to determine and monitor."

The committee report had recommended that NERC "ensure full compliance with the mandatory requirement of stakeholder consultation under Section 48 of the Electricity Act, 2023 regarding future regulatory decisions to avoid a repeat of the confusion and public outcry that trailed the recent tariff increase."


The report was well received by most senators, who expressed concerns about the timing of the tariff hike. They described it as insensitive to the plight of Nigerians who are already struggling with inflation and the high cost of living.


Senator Ali Ndume, the Chief Whip of the Senate, alleged that the tariff hike was discriminatory and unconstitutional. He pointed out that some consumers were being charged higher rates based on their location and duration of service.

Senator Isah Jibrin called for government subsidies to support businesses that are struggling due to high electricity costs. He argued that the government should invest in the power sector to improve its efficiency and reduce the need for tariff increases.

The Senate's suspension of the debate on the electricity tariff increase and its request for NERC to suspend the hike indicate that there is significant opposition to the proposal among lawmakers. The Senate is likely to continue to scrutinize the issue and may make further recommendations in the future.
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