Nigerians are to pay more for electricity as implementation of a minor review of the Multi-Year Tarriff Order (MYTO) begins on July 1.
Platforms Africa reports that the review, a statutory responsibility of the Nigeria Electricity Regulatory Commission (NERC), has been completed, and its implementation scheduled to begin baring any unforseen circumstances.
Electricity consumer group, Nigeria Consumer Protection Network, which confirmed this, said it envisaged a 50 per cent increment.
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President of the group, Kunle Kola Olubiyo, told Platforms Africa in a direct message to the leading pan-Africa media group that a 50 per cent hike is imminent “with the recent floating of Naira/ Deregulation of the Forex Trading Windows allowing the value of Naira to be determined by market forces and the removal of subsidy on petrol.”
He added; “It is expected that these efforts will naturally impact positively or negatively on electricity tariff and translates into general high cost of living in Nigeria.”
He continued; “The last increase Nigeria was benchmarked on N400/$1 being the official exchange.
“As of today, Exchange rate is N750/$1. And Electricity Tariff was fixed on N400/$1. Now will be fix using N750/$1.”
Here below is the statement;
ELECTRICITY TARIFF TO BE INCREASED BY 50% EFFECTIVE FROM 1ST OF JULY , 2023 .
With the recent floating of Naira/ Deregulation of the Forex Trading Windows allowing the value of Naira to be determined by market forces and the
removal of subsidy on petrol..
It is expected that these efforts will naturally impact positively or negatively on electricity tariff and translates into general high cost of living in Nigeria
depending on the school of thought or individual’s perception ..
The last increase Nigeria was benchmarked on
N400/$1 being the official exchange.
As of today, Exchange rate is N750/$1 ..
And Electricity Tariff was fixed on N400/$1 ..
Now will be fix using N750/$1 ..
Moving forward ,
1. Government should pull out her 40% stake in the Power Sector and Break the 11 Electricity Distribution Company’s franchise into smaller units in ways and manners that would break the present market monopoly and promote the ideals of competitive electricity market.. .
2. Government should address matters relating to domestic gas obligation, appropriate gas pricing and gas to domestic market should be sold in local currency ( Naira ) for used by Gas to Power Generation Power Plants..
3. Government should provide tax incentives, fiscal and non fiscal incentives and access to long term low interest single digits credit facilities to indigenous meters assembling plants / local meters manufacturers in order to strengthen their production capacity . .
4. End Users of Electricity in Nigeria should be given the opportunity to buy Pre Paid Meters on the Shelves..
Conversion of the Post Paid Meters in used by Maximum Demand Metered Customers who are bulk users into
Pre Paid Maximum Demand Meters in other to enhanced Energy Accountability and Customers Centric Customers Satisfaction &.value for money…
5. More investment should be channel into capacity expansion of critical power grid infrastructure and network improvements in other to upscale efficient service delivery, quality of supply, customer centricity , health safety and environment in the post privatized nigerian power sector value chain….
Kunle Kola OLUBIYO
President, Nigeria Consumer Protection Network
&
Former,
Member , Presidential Adhoc Committee on Review of Electricity Tariff in Nigeria ( in August, 2020 ) .
