ABUJA, Nigeria – Nigeria’s Senate on Tuesday, July 25, 2023, appealed to the Federal Government to halt the proposed increase in electricity tariffs by the distribution companies, DISCOs, amidst concerns over the growing financial burdens faced by households and businesses.
In addition, the Senate implored the Nigerian Electricity Regulatory Commission, NERC, to broaden its planned engagement with stakeholders, originally slated for Abuja, to all six geo-political zones of the federation, for more comprehensive public participation.
These resolutions were passed in response to a motion titled: “Need to halt the proposed increase in electricity tariff by eleven successor electricity distribution companies, DISCOs.”
The motion was brought forth by Senator Yunus Akintunde (APC Oyo Central), and co-sponsored by Senators Ekpenyong Asuquo (PDP Cross River South) and Aminu Abbas (PDP Adamawa Central).
During the plenary session, Senator Akintunde noted that the 11 DISCOs had applied for a rate review with the NERC, premised on the need to consider macro-economic parameters and other factors that could affect the quality of service, operations, and sustainability of the companies.
“The proposed increase would significantly impact the affordability of electricity for the average Nigerian, as well as exacerbate the financial burdens faced by households and businesses,” Senator Akintunde warned, lamenting that the hike could hinder industrial growth, job creation, and the nation’s strides towards sustainable development and poverty reduction.
He also criticized the NERC’s short time frame—less than a week—for stakeholders to comment on the proposed rate review, calling it insufficient for meaningful engagement.
Senator Akintunde argued, “It is essential to address the issues of inadequate power supply, metering, and quality of service provided by the DISCOs,” highlighting that “customers should not bear the brunt of inefficiencies in the power sector.”
The Senate’s resolutions further urged the NERC to seek alternative measures to tackle DISCOs’ financial challenges, including enhancing operational efficiency, minimizing technical and commercial losses, and refining revenue collection mechanisms.
The Senate also recommended an end to estimated billing and encouraged the provision of affordable prepaid meters to all electricity consumers.
When constituted, the Senate Committee on Power has been instructed to work with the Federal Ministry of Power, NERC, and other stakeholders to devise enduring solutions to the electricity sector’s challenges, including the necessity for comprehensive reforms.
In a final resolution, the Senate advocated that DISCOs should cover the costs of electricity transformers purchased by communities or individuals before these costs are included in the billing system.
