Electricity Tariff Hike Sparks Nationwide Outcry Amidst Deepening Economic Hardship

Nigerians are grappling with renewed economic pressure following the recent approval of a substantial increase in electricity tariffs for consumers enjoying Band A service. The Nigerian Electricity Regulatory Commission (NERC) announced a steep upward review, pushing the tariff for these premium customers from N66 per kilowatt-hour to N225 per kilowatt-hour, a staggering 240% jump, effective immediately. This development has ignited widespread condemnation from citizens, labour unions, and civil society organisations across the country, who argue the hike is ill-timed and adds an unbearable burden on already struggling households and businesses.

The decision comes at a period when many Nigerians are contending with the harsh realities of surging inflation, compounded by the removal of fuel subsidies and the significant depreciation of the Naira. Businesses, particularly small and medium-sized enterprises (SMEs), fear that the drastic rise in operational costs will inevitably translate into higher prices for goods and services, potentially crippling production and leading to job losses. Households, on their part, are bracing for significantly increased monthly utility bills, further eroding their disposable income and deepening the cycle of poverty for many.

Authorities, including the Minister of Power, have defended the tariff adjustment, explaining that it is crucial for attracting much-needed investment into the power sector, ensuring a more cost-reflective tariff regime, and ultimately reducing the government’s colossal subsidy burden. They contend that the measure is specifically targeted at Band A customers, who are expected to receive a guaranteed minimum of 20 hours of electricity daily, thereby justifying the higher charge with improved service delivery. The government posits that this move will help stabilise the sector and make it more attractive to private investors.

However, public sentiment remains largely hostile, with critics pointing to historical precedents where previous tariff increases did not lead to corresponding improvements in power supply quality or reliability. Labour unions have threatened industrial action, demanding an immediate reversal of the hike and calling for more sustainable and consumer-friendly solutions to the nation’s perennial power challenges. The pervasive fear is that without a tangible and consistent improvement in electricity provision, the new tariffs will only serve to further impoverish the populace and stifle economic growth, transforming an essential service into an unaffordable luxury for many.