The Minister of Power, Adebayo Adelabu and the Nigerian Electricity Regulatory Commission, NERC, have been called upon to immediately reverse the recent decision to increase electricity tariff for band “A” customers in the country.
The decision of the Senate Committee on Power led by Senator Enyinnaya Abaribe followed a six-hour interactive session with the minister and stakeholders in the power sector to explain the recent decision to hike Tariffs for
band A customers.
Minister Adelabu defended the tariff hike for band A customers, citing it as a necessary measure to prevent a complete collapse of the power sector.
He emphasized the financial strain on the government due to outstanding debts owed to gas companies and the lack of adequate budgetary allocation for subsidies.
Adelabu says the FG would require $10 billion every year for the next 10 years to fix the power sector in the country.
While the Nigerian Electricity Regulatory Commission (NERC) supported the minister’s stance, concerns were raised by the Central Bank of Nigeria (CBN) regarding the ineffective closure of the metering gap despite a N55 billion loan provided to DISCOs.
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According to the CBN, The loan has seen minimal repayment, and estimated billing remains prevalent among unmetered customers
Criticism was also directed towards DISCOs by the senators for their perceived inefficiency and exploitation of customers to compensate for their shortcomings.
Minister Adelabu told Lawmakers that a company, Ziklag Networks Limited allegedly collected N32 billion for a contract to supply meters but has refused to do so in 20 years.
.The Manufacturers Association of Nigeria and former NERC Chairman, Sam Amadi, decried the lack of sufficient consultation and the discriminatory nature of the tariff increase, citing potential violations of the law.
The Senate panel is expected to compile its findings into a report and propose appropriate recommendations following the investigative hearing.
(Editor: Paul Akhagbemhe)
