Yesterday, the Senate halted discussions on a report regarding the proposed increase in electricity tariffs, interrupting the debate midway. Additionally, it directed the National Electricity Regulation Commission (NERC) to suspend the tariff hike. This decision came after Senator Titus Zam, Chairman of the Committee on Rules and Business, raised a point of order while considering the report, which had been previously presented by Senator Eyinnaya Abaribe, Chairman of the Senate Committee on Power.
The committee reasoned that suspending the tariff hike was necessary to facilitate extensive consultations with consumers regarding the various cost bands of the service. They highlighted concerns about the difficulty in determining and monitoring feeder location and service duration, suggesting a need for a more thorough approach.
Furthermore, the committee’s report recommended that NERC ensure full compliance with stakeholder consultation requirements under Section 48 of the Electricity Act, 2023 for future regulatory decisions. This was to prevent the recurrence of the confusion and public outcry that followed the recent tariff increase.
The majority of senators at the plenary session welcomed the report, with many condemning the timing of the tariff hike. They deemed it insensitive to the challenges faced by Nigerians, particularly amidst inflation and a high cost of living.
The Senate’s chief whip, Ali Ndume, criticized the sudden tariff hike, labeling it unconstitutional and discriminatory. He pointed out that the disparity in power allocation among different consumer groups amounted to discrimination contrary to constitutional provisions. He expressed relief that the president did not endorse such policies.
Senator Isah Jibrin of Kogi East lamented the adverse impact of power shortages on businesses in Nigeria, suggesting that government intervention, possibly through subsidies, was necessary to support struggling companies.
