The Federal Government on Thursday directed the Nigerian Electricity Regulatory Commission to suspend the recently adjusted electricity tariff, two days after the increase was announced.
The Minister of Power, Sale Mamman, made this known in a statement on Thursday.
“The public is aware that the Federal Government and the Labour Centers have been engaged in positive discussions about the electricity sector through a joint ad-hoc Committee led by the Minister of State for Labour and Productivity and Co-Chaired by the Minister of State for Power. Great progress has been made in these deliberations which are set to be concluded at the end of January, 2021.
“To promote a constructive conclusion of the dialogue with the Labour Centers (through the Joint Ad-Hoc Committee), I have directed NERC to forestall the implementation of the duly performed minor review (which adjusted tariffs between N2 per kWh and N4 per kWh) until the conclusion of the Joint Ad Hoc Committee’s work at the end of January 2021.
“This will allow for the outcome of all resolutions from the Committee to be implemented together. The Administration is committed to creating a sustainable, growing, and rules-based electricity market for the benefit of all Nigerians.”
On Tuesday, NERC announced an increase in the electricity tariff. The increase was based on different consumer classes, and was said to take a retroactive effect from January 1m 2021.
NERC explained that the N2 to N4 adjustment in tariff was due to inflation and changes in foreign exchange rates.
However, labour unions, opposed to the action, threatened industrial action to protest the measure, accusing the government of being insensitive to the plight of Nigerians, given the latest adjustments came just two months after a previous one.
Mamman said a committee was working on the new electricity tariff regime and that the committee should be allowed to complete its work before any development or adjustment would take place
He therefore directed NERC to suspend the recent increment until the committee concludes its work by end of January.
