The federal government’s plan to increase electricity tariffs yet again continues a troubling trend of recurrent hikes that have not translated into improved service delivery for consumers.
Development Diaries reports that the plan to increase charges comes as Nigeria’s indebted electricity distribution companies (DisCos) are pushing for pricing to be cost-reflective so they can strengthen their profits.
According to reports, the Special Advisor to President Bola Tinubu on Energy, Olu Verheijen, gave this hint at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, where Nigeria presented a $32 billion plan to expand electricity connections by 2030.
Since the privatisation of the power sector in 2013, Nigerians have witnessed over a 500 percent increase in electricity tariffs, yet the country remains stuck with an insufficient power supply, struggling to generate less than 6,000 megawatts for a population of over 200 million people.
This raises serious concerns about whether higher tariffs genuinely lead to better services or merely serve as a revenue boost for DisCos without any corresponding improvement in efficiency.
Despite repeated justifications for these increases, including claims that cost-reflective tariffs will attract private investment and stabilise the sector, Nigerians have yet to experience any meaningful change in electricity supply.
Even the most recent hike in April 2024, which saw Band A customers paying three times more per kilowatt-hour (from N68 KWh to N225KWh), did not lead to a notable enhancement in power availability.
Many Nigerians, including those in Band A, continue to experience erratic supply, frequent power outages, and poor customer service from DisCos, making the justification for yet another increase highly questionable.
Furthermore, a cost-reflective tariff does not automatically translate to a service-reflective performance. While the government argues that increased tariffs are necessary for financial viability and private sector participation, the reality is that higher charges do not guarantee accountability or efficiency.
If past tariff hikes have not resolved the sector’s inefficiencies, there is little reason to believe that another increase will bring about the long-awaited stability and reliability in electricity supply.
The burden of constant tariff increases falls disproportionately on Nigerian households and businesses, many of whom are already struggling with inflation, fuel price hikes, and an unstable economy.
Also, the government’s assurance that subsidies will cushion the impact for vulnerable consumers does little to reassure the broader population, especially considering past inconsistencies in subsidy implementation.
Many Nigerians have already begun turning to alternative energy sources, such as solar power, to escape the high costs and unreliable service provided by the national grid.
Rather than resorting to yet another tariff hike, Development Diaries calls on the government, led by the Minister of Power, Adebayo Adelabu, to focus on addressing inefficiencies within the electricity sector, ensuring proper regulation of DisCos, and prioritising investments in infrastructure that will genuinely improve power generation and distribution.
Until Nigerians see tangible improvements in electricity supply, any further increase in tariffs will only deepen public frustration and skepticism about the government’s commitment to solving the country’s energy crisis.
Photo source: TCN