Editorial
No To Another Electricity Tariff Hike
Electricity distribution companies also called Discos began this year with a further increase in electricity tariffs. This followed a new order issued by the Nigerian Electricity Regulatory Commission (NERC) instructing the DisCos to increase tariffs effective January 1, 2021. The hike came barely two months after the implementation of a controversial tariff increase.
The sudden increase in tariffs arose from a suspension of an earlier order issued in August increasing tariffs with effect from September 1, 2020. However, a threat by labour to embark on a nationwide strike compelled the government to suspend the tariffs for two weeks ending October 15, 2020. The Federal Government and the organised labour then agreed to provide a tariff relief of N10.20 per kilowatt-hour for Nigerians for the next three months and also distribute 6 million free meters.
The January tariff increase suggested all customers would see their tariffs increased regardless of the band unlike in the previous order where tariff class D & E was frozen. Customers on Tariff Class A, B, and C would see their tariff go back to the tariff order released on September 1, 2020. Some of these customers would see their tariff increased by as high as 120% compared to the pre-September Multi Year Tariff Order (MYTO) 2020 levels.
Recall that the proposed hike in September, 2020 was greeted by outrage among Nigerians, including labour unions. The Nigerian government thereafter suspended the hike, amidst dialogues with stakeholders. In November, the tariff was eventually implemented while discounts were given for sundry categories of customers.
However, in a sudden twist, the Minister of Power, Mr Saleh Mamman, directed the NERC to inform all Electricity Distribution Companies (DISCOs) to suspend the latest increase and revert to tariffs that were applicable in December, 2020. According to the Minister, the reversal to the old tariff was to promote a constructive conclusion of the dialogue with the labour centres through the Joint Ad-Hoc Committee.
In a contradictory statement, Mamman said there was no approval for a 50 per cent increase in the tariff, but affirmed that the NERC only made some adjustments, which led to some level of increase in the tariff. The minister also stated that the government had continued to fully subsidise 55 per cent of the on-grid consumers in bands D and E (those with lower than 12 hour power supply) and maintained the lifeline tariff for the poor and underprivileged.
Following last year’s controversial increase in electricity tariffs, the Federal Government and the Labour Centres have been engaging in positive discussions about the electricity sector through a Joint Ad-hoc Committee. That committee is led by Minister of State for Labour and Productivity, Mr Festus Keyamo, and co-chaired by the Minister of State for Power, Mr Goddy Jedy-Agba.
The reversal of the latest tariff hike is laudable. However, we think that this reversal till the conclusion of the Joint Ad-Hoc Committee’s work at the end of January, 2021, is only a temporary relief. Apparently, the three weeks respite is to accommodate the spirit of the agreement between labour and the Federal Government on tariff increase since last year. There is a possibility that the increase may be reconsidered during this period.
NERC is already anticipating an increase. This is why we call for circumspection on this issue. No matter what becomes the outcome of the Ad-Hoc Committee’s work, an increase at this critical time is ill-timed and not economy-friendly. Therefore, the government has to go beyond the reasons given for the timed suspension to include consultations with other economic actors, including manufacturers, who are the major consumers of electricity and whose businesses would be most impacted by the increase.
Nigerians are already groaning under an increment operating environment, including the debilitating impact of COVID-19 disruptions and deteriorating infrastructure. It is important for us to avoid this additional burden, moreso when the power sector is characterised by poor services. Socially sensitive policies such as this require robust engagement and dialogue. The strategic approach is important to avoid a backlash and the risk of derailment of the power sector reform.
We firmly reject any increase in electricity tariffs regardless of the final decision of the committee. Such increase will not only jolt citizens, it will be considered ill-timed, insensitive, and a deliberate move to further impoverish and heighten the difficulties Nigerians are faced with at a time they are trying to recover from the trauma of months of COVID-19 lockdown.
The deaf and dumb posture of the electricity regulator is equally worrisome. It is important to state that the NERC would be putting its name on the wrong side of history if it continues to play the ostrich while a group of portfolio investors make a blood meal of Nigerians. It is callous to hike electricity tariffs on a week the same government deregulated the oil and gas market by allowing marketers to increase fuel prices anyhow.
That Nigerians need power is stating the obvious. The MYTO was introduced to take care of different people but the framework seems to have failed. Consequently, Nigerians should take the challenge at a personal level. Individuals, corporate bodies, and establishments should produce power and vend. Many institutions are currently doing this, which is gratifying.
States should similarly take charge by generating power for their people irrespective of the complications in the exclusive federal laws that give NERC some arbitrariness. There lies the solution to the power problem. Nigerians should stop being enslaved. Asking people to pay more without electricity is a scandal that the people’s representatives in all legislatures should reject, or cease from being addressed as representatives of the people.
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Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
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