Mr. Dapo Okubanjo, a Member of the Independent Media and Policy Initiative (IMPI), has asserted that the recent increase in electricity tariff for certain users is actually a pro-poor measure and not a burden on the majority of Nigerians. The Federal Government, through the National Electricity Regulatory Commission (NERC), announced the tariff hike for users in the Band A category, effective April 3.
According to Okubanjo, reports from NERC indicate that the subsidy on electricity tariff remains largely intact. He explained that the adjustment made by the regulatory body is in response to demands from electricity distribution companies (DisCos) for a cost-reflective pricing regime, which amounts to a partial removal of subsidy.
Okubanjo clarified that the increase only affects about 15% of electricity users, approximately 1.5 million consumers who, on paper, enjoy over 20 hours of electricity supply daily or reside within Band A of the power distribution scheme. This implies that the vast majority of Nigerians, approximately 200 million people, are not affected by the adjustment.
He highlighted that amidst the controversy surrounding the electricity tariff hike, there were indications that President Bola Tinubu advocated for shielding the majority of Nigerians from paying more for electricity, acknowledging the current high cost of living. This move, according to Okubanjo, represents a deliberate pro-poor initiative aimed at increasing liquidity in the sector.
Okubanjo emphasized that President Tinubu’s stance aligns with his commitment to protecting the less privileged in society from the harsh effects of reforms. He urged the public to refrain from spreading misinformation about the tariff adjustment and to recognize that the average Nigerian is being shielded from its impact.
