Amidst growing dissent over the recent withdrawal of electricity subsidy for over 1.8 million customers classified under Band A feeders, the Organised Private Sector (OPS) is ramping up efforts to challenge the tariff hike, now seeking intervention from President Bola Tinubu.
The OPS, represented by bodies like the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Nigeria Employees Consultative Association, maintains its stand for suspending the subsidy removal pending a thorough review.
The decision, announced by the Nigerian Electricity Regulatory Commission (NERC), saw electricity bills for Band A consumers surge to N225 per kilowatt-hour, marking a substantial 240% increase from the previous rate of N68/kWh.
Triggering widespread backlash from both the private sector and labor unions, laying concerns over its adverse effect on businesses, inflation, and the viability of small and medium enterprises (SMEs).
Speaking to The PUNCH, Director-General of Nigeria Employers’ Consultative Association, Mr. Adewale-Smatt Oyerinde, affirmed the OPS’s intention to engage the presidency, emphasizing the necessity for stakeholders’ dialogue.
NACCIMA President, Mr. Dele Oye, also stressed on the importance of proactive engagement, citing deficiencies in the preparatory measures taken by NERC and power distribution companies.
In response, Minister of Power, Adebayo Adelabu, reiterated the government’s commitment to the tariff hike, emphasizing the imperative of achieving 20 hours of electricity supply for Band A consumers.
Adelabu warned of consequences for distribution companies failing to meet this benchmark, underscoring the need for a cost-reflective tariff structure to attract investment and sustainably bridge the sector’s infrastructure gap.
Meanwhile, the Benin Electricity Distribution Company (BEDC) acknowledged shortcomings in meeting the minimum service level of 20 hours on certain feeders, attributing outages to technical faults and external factors. The BEDC assured customers of remedial measures to ensure consistent power supply.
