The Federal Government (FG) has said it is not ready to impose an additional burden on Nigerians for now by approving an increase in electricity tariff.
Minister of Power, Adebayo Adelabu, disclosed this at an interactive session with journalists in Abuja, on Wednesday.
In July 2023, the Electricity Distribution Companies (DisCos) urged the Nigerian Electricity Regulatory Commission (NERC) to approve its request for rate review.
The Multi-Year Tariff Order (MYTO) methodology gives room for a biannual review of tariffs with consideration to inflation, interest rates, and foreign exchange, while major reviews are carried out every 5 years when all of the inputs are reviewed with stakeholders.
Speaking with newsmen on Wednesday, Adelabu said if the review is approved, Nigerians will pay double the current rate.
“I never said it is not time to charge a cost-reflective tariff, I said cost-reflective tariff ought to have been implemented months ago because it is the source of liquidity to the system, but for political reasons and empathy, we cannot impose additional burden on Nigerians.
“It is not politically expedient to now implement a tariff that is more like doubling the existing tariff, but for political expediency, I don’t think it is something that we can do so immediately,” he said.
According to the Minister, before the Federal Government approves a tariff increase, “there will be lots of sensitization and communication with the general public and we must ensure that there is an assured increment in power supply.”
Meanwhile, the Minister has disclosed that the 700 megawatts Zungeru hydro power plant will commence operation by December ending.
Adelabu said, ” The only thing left is just to complete the rest of the evacuation infrastructure so that the entire 700 megawatts being generated can be evacuated into the transmission. As it is today, the infrastructure we have there can only generate 300 megawatts.”
