Fresh electricity tariff increase: FG reveals 6 reasons for recent hike (see list)

Fresh electricity tariff increase: FG reveals 6 reasons for recent hike (see list)

The Nigerian government has explained why it yet again approved an increase in electricity tariff payable by electricity consumers in the country.

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A report emerged on Tuesday, January 5, that the Nigerian Electricity Regulatory Commission (NERC) approved an increase in electricity tariff across the country, according to Daily Trust.

The commission in a directive issued on December 31, 2020, stated that the new tariff will take effect from January 1, 2021.

FG justifies recent increase in electricity tariff

An employee of the Afam VI power plant walks past the electrical facility of the plant in Port Harcourt.
Photo: Florian Plaucheur
Source: Getty Images

According to NERC, the following reasons that prompted the recent tariff hike include:

1. Nigeria’s inflation rate

2. Exchange rate

3. US rate of inflation

4. Available generation capacity

5. Gas price

6. MDA losses and Capex (Capital expenditures) adjustment

The new increment is coming barely two months after the implementation of the controversial hike proposed last year.

Meanwhile, Nigeria’s power industry has made a historic achievement as the Transmission Company of Nigeria (TCN) announced that the national grid recorded its highest national peak of 5,459.50MW, Channels TV reported.

Breaking: FG increases electricity tariff again

The new figure beats the previously recorded highest peak of 5,420.30MW by 39.2MWs which is the highest ever recorded in Nigeria’s power sector as of date.

The former highest peak was achieved on August 18. 2020. Ndidi Mbah, the general manager, public affairs, TCN, who made this known in a statement issued on Friday, October 30, noted that this new record was achieved on Wednesday, October 28.

In another news, Senator Danjuma Goje has said it may take Nigeria about 41 years to achieve steady power supply due to the federal government’s poor funding of the power sector.

The lawmaker made the statement after representatives from the ministry of power disclosed that of the N165b required for capital projects in 2020, only N4b was released by the government.

According to Vanguard, Goje who is a member of the Senate committee on power expressed concern over the inadequate funding for the power sector.

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Still on the power sector, a group, Civil Society Groups for Good Governance (CSGGG) has dismissed the recent media reports of N4.6billion fraud in the ministry of power.

The group consisting of 180 civil society organisations said the report was hurriedly put out without proper research.

CSGGG provided evidence on the true situation of things in the ministry.

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