The Nigerian Senate has called on Bola Tinubu’s administration to halt its proposed electricity tariff hike through the withdrawal of electricity subsidy.
This appeal was made during a plenary session held in Abuja on Wednesday.
The motion, titled ‘Planned Increase in Electricity Tariff and Arbitrary Billing of Unmetered Customers by Distribution Companies (DisCos)’, was brought under matters of urgent public importance by Aminu Abbas (PDP-Adamawa) and 10 co-sponsors.
Mr. Abbas expressed concern over the planned electricity tariff increase amidst the nation’s economic challenges, widespread poverty, and high cost of living. He cited the staggering debts owed to generating companies (GenCos) and gas companies, amounting to N1.3 trillion and $1.3 billion respectively.
According to Mr Abass, the minister had said that more than N2 trillion was needed for subsidy, but only N450 billion was budgeted in 2024.
“The Senate may further note that the same electricity businesses are collecting money from customers for services not rendered. When they have not added anything to the equipment they inherited from the Power Holding Company of Nigeria.
READ ALSO: Kogi To Share 50 Bags of Rice Among 4.5m People As Palliative
“Communities buy transformers to replace damaged ones in addition to overburdening bills and arbitrary estimates for unmetered customers. This is taking place in a country where a greater number of the population is living below the poverty line with stagnant wages. With rising inflation and depreciating currency, the prospect of higher electricity bill is unattainable,” Mr Abbas said.
Highlighting the unfair billing practices by DisCos, Mr. Abbas criticized the collection of fees for services not rendered and arbitrary estimates for unmetered customers.
He noted that this burden falls heavily on a population struggling with poverty, stagnant wages, rising inflation, and a depreciating currency.
The motion also addressed the issue of overbilling unmetered customers, citing a penalty of N10.5 billion imposed on DisCos by the Nigerian Electricity Regulatory Commission (NERC). Despite previous directives for mass prepaid metering, the problem persists, affecting small and medium enterprises and hindering their operations.
In response, the Senate mandated the committee on power to investigate the subsidy requirements, debts owed by the Ministry of Power, the failed agreement on prepaid meters, and the enforcement of regulatory measures. The committee was also tasked with engaging NERC to develop lasting solutions to energy billing issues and ensuring the judicious utilization of penalties imposed on DisCos.
Additionally, the Senate directed NERC to provide relevant documents on metering, post-privatization requirements for DisCos, and evidence of regulatory actions taken. The committee is expected to submit a comprehensive report for further legislative action.
The resolution reflects the Senate’s commitment to addressing the challenges in Nigeria’s electricity sector and ensuring equitable service delivery to consumers across the country.
