The Senate has declared that the nation’s current mood will not support any plans by the Federal Government to increase tariffs on electricity. Consequently, it has urged the government to abandon any such plans, asserting that Nigerians are already grappling with challenging times and may not be able to bear the additional burden of a power tariff hike.
The Senate’s decision was expressed in a resolution passed in Abuja on Wednesday. This follows a recent statement attributed to the Minister of Power, Chief Adebayo Adelabu, indicating that Nigeria could no longer sustain subsidies on electricity, hinting at a potential government move to raise tariffs.
The minister highlighted that the subsidy on electricity currently exceeds N2 trillion, of which the government allocated only N450 billion in the 2024 budget. Adelabu also disclosed outstanding debts of N1.3 trillion to power generating companies (GenCos) and a separate $1.3 billion owed to gas companies.
On Wednesday, the Senate, through a motion of urgent public importance led by Senator Aminu Iya-Abbas from Adamawa State and 10 others, called on the government to refrain from increasing tariffs on electricity. The Senate Committee on Power was tasked with investigating the N2 trillion subsidy requirement, the alleged N1.3 trillion owed to GenCos, and the $1.3 billion owed to gas companies.
The Senate urged the Nigerian Electricity Regulatory Commission (NERC) to ensure the judicious use of the N10.5 billion penalty imposed on Discos for various infractions. Additionally, they emphasized the need to find lasting solutions to Nigeria’s electricity billing system.
During the debate on the motion, several senators wholeheartedly supported it. Senate Minority Leader, Senator Abba Moro, cautioned that any attempt to raise electricity tariffs would be “ill-timed.” He emphasized the need to focus on improving electricity generation and distribution before considering tariff hikes, urging against subsidy removal.
Senator Aminu Tambuwal echoed a similar sentiment, likening the removal of subsidies on electricity or tariff hikes to “adding petrol to fire.” Tambuwal urged caution in handling the issue of tariff hikes, fearing it could escalate tensions in the country.
Former governor Senator Orji Kalu reminded his colleagues that governments worldwide provide subsidies. He cited the United Kingdom and the United States as examples of countries that subsidize food, electricity, and other essential needs. Kalu criticized electricity companies for not delivering adequate energy and stressed the importance of focusing on providing reliable electricity before considering tariff increases.