In response to circulating reports, power distribution companies in Nigeria have vehemently denied any plans for an imminent electricity tariff hike effective from January 1, 2024. Despite speculations, both the Nigerian Electricity Regulatory Commission (NERC) and the Federal Ministry of Power have not issued any directives regarding such an increase.
Representatives from various distribution companies, including the Jos Electricity Distribution Company and the Enugu Electricity Distribution Company, emphasized the absence of official communication or directives sanctioning any tariff adjustments. Adekole Elijah of Jos Electricity Distribution Company clarified, “No directive or order has been received regarding a tariff increase. Until a confirmed directive is issued, this remains a mere rumor.”
Emeka Ezeh from Enugu Electricity Distribution Company echoed this sentiment, emphasizing that without NERC’s explicit approval, any contemplation or desire to raise tariffs would not materialize. He stated, “There is no directive from NERC on this matter. Even if there is contemplation, without official approval, no tariff adjustment will occur.”
An official from NERC supported these claims, affirming that no such directive had been issued but acknowledged that minor tariff reviews typically occur every six months.
These denials contradict previous statements made by the Minister of Power, Adebayo Adelabu, who disclosed in November 2023 that President Bola Tinubu had halted an electricity tariff hike, opting instead for a subsidy on nationwide power consumption. Adelabu cited the need for consistent and increased power supply before considering any tariff adjustments.
The issue of a cost-reflective tariff, necessary for potential tariff hikes, was discussed by Adelabu, underscoring the government’s ongoing subsidy to bridge the gap between actual costs and current tariffs.
A recent exclusive report revealed that between January and September 2023, the Federal Government had allocated N375.8 billion towards electricity subsidies, highlighting the ongoing financial implications within the power sector.