House of Reps Orders Reversal of Electricity Tariff Hike Ahead of Nationwide Protest

The House of Representatives has directed the Nigerian Electricity Regulatory Commission (NERC) and Electricity Distribution Companies (DISCOs) to revert to the old electricity tariff. This decision follows an investigation into the recent tariff increase affecting customers in the Band A category.

The report was presented by the chairman of the joint committee, Victor Nwokolo, a few days ago. It outlined three key recommendations that the House adopted. The tariff hike, implemented by the Tinubu administration in April, raised prices from ₦68 to ₦225 ($0.15) per kilowatt-hour. This increase impacted 17 per cent of customers (Band A consumers), who consume about 40 per cent of the country’s electricity output.

The government justified the hike as a necessary measure to improve liquidity in the power sector, burdened by over ₦3 trillion in debts owed to gas and generation companies. However, the increase has faced backlash from consumers and labour groups, including the Nigerian Labour Congress (NLC).

On April 30, the House urged NERC to suspend the tariff hike pending further investigation, but the government proceeded with its implementation. The committee’s recommendations include reverting to the previous tariff structure and conducting a phased implementation of any future increases. These recommendations come at the heel of the planned #EndBadGovernance nationwide protests starting in August.

Mr Nwokolo emphasised the need for independent experts to assess the actual cost of electricity tariffs. The committee’s resolution was adopted without objection.

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