No approval granted for new electricity tariffs —NERC

By Abubakar Yunusa

The Nigerian Electricity Regulatory Commission (NERC) says it has not issued any directive on the increase of electricity tariff from January 1, 2023.
Media reports had claimed that the commission finalised plans to increase the electricity tariff.
The reports also noted that electricity distribution companies (DisCos) would soon inform customers about the development.
Refuting the claims, Usman Abba Arabi, NERC’s spokesperson, told TheCable that the commission has not approved a new electricity tariff.
“The Commission (NERC) has not approved any new electricity tariffs for any of the electricity distribution companies within the Nigerian Electricity Supply Industry,” he said.
“No new electricity tariff has been approved. Nigerians should ignore any news reports about new electricity tariff coming up on the 1st January 2024.”
In June 2023, the federal government had hinted at removing the N50 billion monthly electricity subsidy in the sector owing to the revenue shortfalls.
However, in November 2023, Adebayo Adelabu, minister of power, said President Bola Tinubu stopped the increase in electricity tariff, insisting on the payment of subsidy on power consumed in the country.
In its third-quarter (Q3) report, NERC had said the government incurred a subsidy obligation of N204.59 billion during the period.
The report noted that the subsidy expenses were incurred due to the lack of cost-reflective tariffs across all DisCos.