President Yemi Osinbajo are doubly ominous,

 

THE Nigerian Electricity Regulatory Commission hit consumers below the belt yet again last week when it announced impending increases in electricity tariffs without addressing the fundamental structural problems in the sector. It is the latest episode in the unending servitude of the government to the second rate investors that took controlling interests in usatimes.cc the privatised power assets at the expense of the economy. Will the Muhammadu Buhari administration also betray the people’s trust by caving in to narrow vested interests?

Sam Amadi, the Chairman of NERC, whose loyalty appears to be with the under-performing power distribution com usanews.cc panies rather than the Nigerian people, was in his voluble element when announcing the impending increases. As he told Bloomberg, the tariffs will range from five per cent to 40 per cent, though proposals by the DisCos range from 32 per cent to as high as 83 per cent for commercial consumers. The report was silent on the more substantial issues of service delivery, un-m news etered consumers and “crazy bills.”

We assert that the major task for NERC is to compel the DisCos to immediately give prepaid meters to every consumer and stop the extortionate and primitive practice of arbitrary bills, labelled “estimates.” Instead, it has repeatedly approved tariff increases beyond the schedule laid down in the Multi-Year Tariff Order and the Electricity Power Reform Act, according to the Nigerian Electricity Consumers Advocacy group.

Recent comments by Vice-President Yemi Osinbajo are doubly ominous, reminiscent of the detachment of previous governments from the people and global economic trends. Addressing a meeting of the Manufacturers Association of Nigeria, he said, “…if we want to have a cost-effective tariff, …the only way is to ensure that we are paying and compensating the value chain − from generation to distribution,” adding, “The GenCos are producing power, but they expect to be paid for all the power they produce. Now, if 40 per cent is lost, but they have to pay for it somehow. So government has to come in and play some kind of role to ensure the entire value chain is paid for.” He went on to emphasise that “tariffs cannot remain at that level….”