Band A tariff not among 10 most expensive in sub-Saharan Africa- Minister of Power

The tariff increase was met with pushback from the Nigeria
Labour Congress (NLC).

However, on June 10, the Nigeria Governors’ Forum (NGF)
asked the federal government to gradually phase out payment of electricity
subsidies, describing it as “ineffective”.

According to Adelabu, N1.73 billion is projected to be saved
by the federal government from the increase in the Band A tariff.

The minister said despite the hike, the Band A tariff is
“not among the top 10 most expensive tariff in Sub-Saharan Africa”.

Adelabu said the investment will not come into the power
sector if the pricing framework is not bankable, adding that the “huge
obligations incurred” by the federal government through tariff shortfalls can
be channelled to other segments of the economy.

He said tariffs will always be cost-reflective because the
federal government can no longer afford subsidising electricity at the current
rate.

The minister said the increase in electricity tariff is not
targeted at making life difficult for Nigerians.

“Despite the significant hike in end-user tariffs, the grid
remains the most cost-effective electricity source among the analysed options,”
he said

“When we look at the average cost of generating electricity
on our homes, businesses, industries it is actually cheaper with the increase
in tariff than what we use to have because most (customers) that are enjoying
more stable supply of electricity spend less on alternative source of
electricity which is from fuel or diesel power generator. That has been the
case in the past two month for those that are in Band A.”

Adelabu said the increase in tariff is making the DisCos
increasingly responsive by fixing their infrastructures to migrate more
customers to Band A.

 “The DisCos are
getting more and more responsive by the day by ensuring that they now pay much
attention to upgrading and enhancing their infrastructures. On daily basis,
they are migrating more customers to Band A and we have been seeing positive
feedback from consumers as they now have more stable electricity even though
more expensive,” the minister said.

ORGANISED LABOUR
SHUNS HEARING

The committee frowned at NLC for shunning the invitation of
the committee to attend the hearing.

The lawmakers said the organised labour was “quick” to
protest and shut down the national grid over the increase in tariff but failed
to attend the crucial public hearing.

Ademorin Kuye, a member of the committee, said the public
hearing was widely advertised but NLC declined to attend the hearing because
its members are attending the International Labour Organisation (ILO)
convention in Geneva, Switzerland.

“When this tariff was increased NLC protested and grounded
activities,” Kuye said.

Victor Nwokolo, chairman of the committee on power, also
condemned the absence of organised labour.

“It is disheartening to say. They were quick to shut down
national grid but can’t present their position,” he said.

Ben Kalu, the deputy speaker of the house, who represented
Tajudeen Abbas, his principal, said he “expected that the NLC, who was the
first to take action” on the tariff hike, to attend the hearing.

“As have been observed by various respected colleagues and
condemned by members of this committee, the chair, the national assembly
condemns equally the inability of the of the Nigerian Labour Congress to attend
this all important public hearing,” he said.

“The parliament remains the people’s house. If there are
issues to ventilate, the parliament remains the best place to air your view
that is unbiased. The view that is not used to scandalise, view that is
balanced, a view that is people-oriented. Such views can be adjudged so only
when they pass through the pruning of the parliament.”

Kalu said NLC “will take correction,” adding that the house
should continue to partner with them.

The lawmaker suggested the minister should ask the NLC to
submit the group’s memoranda.