President Buhari Nod To Electricity Tariff Increase From September 1st 2020

President Muhammadu Buhari has signed into law the long-expected electricity tariff increase which became effective from September 1st, 2020.

Brandnewsday gathers that the Nigerian Electricity Regulatory Commission (NERC) had approved service reflected tariffs for the electricity sector and was due to commence July 1, 2020, after it was initially postponed from April 1, 2020. But it was suspended after reports indicated Electricity Distribution Companies, DisCos, had pushed for a postponement until key areas of disagreement are sorted.

According to Thisday, ”the president may have finally approved the official implementation of cost-reflective tariffs for the Nigerian Electricity Supply Industry (NESI),” with the tariff now set to go live on September 1, 2020. The report also indicates the president signed off the tariff increase on Tuesday following pressures by the World Bank.

Electricity Tariff increase

Recall that a few months ago, the National Assembly promised electricity tariffs increase will not be effected until the first quarter of 2021 following several deliberations it held with stakeholders.

In the course of the meeting, the DISCOs too admitted that they were not well prepared for the planned hike in tariffs even though they so much desired the increase. The meeting agreed to defer the planned hike till the first quarter of next year while the leadership of the National Assembly promised to meet with President Muhammadu Buhari on the issue.

Senate President, Ahmad Lawan speaking at the end of the meeting, said: “The agreement here is that there is not going to be an increase in the tariffs on July 1st”.

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“The Speaker and I, we are going to take appropriate action and meet with the President. We are in agreement here that there is no question on the justification of the increase but the time is simply not right and appropriate measures need to be put in place. So between now and the first quarter of next year, our task will be to work together with you to ensure that we put those blocks in place to support the eventual increase in tariffs”.

However, It remains uncertain whether the National Assembly will further look into this pressing matter in hand.