The Nigerian Electricity Regulatory Commission (NERC) has refuted claims of approving an increase in electricity tariff from January 1, 2023. Media reports suggesting an imminent hike in electricity prices were dismissed by NERC’s spokesperson, Usman Abba Arabi.
Arabi clarified that the Commission has not issued any directive for new electricity tariffs for the distribution companies (DisCos) within the Nigerian Electricity Supply Industry. He urged Nigerians to disregard reports about an impending tariff increase on January 1, 2024.
This denial comes in response to previous speculation in June 2023, where the federal government hinted at removing the N50 billion monthly electricity subsidy due to revenue shortfalls. However, in November 2023, Minister of Power Adebayo Adelabu stated that President Bola Tinubu intervened, preventing the increase in electricity tariffs and insisting on continuing the subsidy for power consumption in the country.
In its third-quarter (Q3) report, NERC highlighted that the government incurred a subsidy obligation of N204.59 billion during the period. The report attributed these subsidy expenses to the lack of cost-reflective tariffs across all DisCos.
As Nigerians await further developments, the denial from NERC aims to clarify the current status and allay concerns regarding potential electricity tariff hikes in the near future.
