‘Electricity Tariff Hike’ll Inflict More Hardship On Nigerians’

Stakeholders in the electricity sector have said that the proposed hike in electricity tariff will inflict more hardship on Nigerians who are already feeling the heat of petrol subsidy removal.
They stated this in separate interviews with The Tide source on Monday in Ibadan.
The Principal Partner, Utilities Consumers’ Rights Advocacy Initiative, Mr Shadrack Akinbodunse, said there had never been corresponding performances from distribution companies (discos) to justify every new tariff regime.
Akinbodunse noted that power supply had been getting worse since the privatisation of the sector due to what he called poor planning for expansion and failure to make timely provisions for obsolete equipment.
According to him, mass meter deployment, as promised by the discos during privatisation, had also become a mirage, while old and obsolete meters were not replaced, in disregard to an order by Nigerian Electricity Regulatory Commission (NERC).
“It’s a known fact that the Multi-Year Tariff Order (MYTO) pricing framework is essential to the survival of discos but it also goes with their corresponding performances to justify every tariff regime.
“Till date, there has never been any tariff regime justified with measurable performances by discos, yet they keep increasing tariff.
“This is unfair and an open injustice to electricity customers across the country. The discos should justify their present tariff and stop shortchanging Nigerians”, he said.
Akinbodunse also claimed that there had been age-long open cheating and extortion by electricity workers, especially any time power equipment developed fault in any community.
“Most times, they tell customers that there is no provision for repair or replacement of faulty power equipment in their stores.
“Most community development associations (CDAs) have now become a conduit pipe to milk people through power supply fault and activation of new installations.
“In view of the above, we strongly condemn electricity tariff hike in any form”, he said.
Also speaking, the Director-General, Manufacturers’ Association of Nigeria (MAN), Mr Segun Ajayi-Kadir, said higher electricity tariff would directly increase the cost of production for manufacturers.
“Already, we have power constituting between 28 and 40 per cent in the cost structure of the manufacturing industry.
“So the impacts of the new tariff hike on the manufacturing industry will be intensive, particularly on metal processing, heavy machinery and chemicals manufacturing.
“A spike in electricity tariff will also erode the profit margin of the manufacturers and reduce their ability to expand operations and create new jobs.
“There is high probability of the activities of small and medium-scale enterprises (SMEs) being paralysed with the proposed hike in tarrif.
“There may also be a decrease in the revenue collectable by government, while manufacturers will ultimately pass the additional cost to the consumers of their products”, he said.