Senate Disapproves FG’s Plan To Increase Electricity Tariff Via Subsidy Removal

Senate President Godswill Akpabio rejected the federal government's plan to increase the electricity charges by removing electricity subsidy, similar to what the Tinubu-led administration did with fuel subsidy.

Aside from rejecting, the Senate also asked to do a proper investigation of why the demand for electricity subsidy removal was made by the federal government in the first place.

The senate also pointed out that the country is already going through a high level of poverty and harsh economic conditions, noting that removing subsidies will increase the tariff for Nigerians and make it unbearable to pay the bills.

"In a country where a greater number of the population live below the poverty level, with stagnant wages, rising inflation, and depreciating currency, the prospect of the higher electricity bill is unattainable," Senator Aminu Abbas (PDP, Adamawa Central) said, Punch reported.

Abbas added, "The issue of arbitrary energy charges on unmetered customers has become worrisome given the February 2024 report of the Nigerian Electricity Regulatory Commission on the non-compliance with energy billing caps by DisCos and the penalty of N10.5bn imposed on the distribution companies that over-billed its unmetered customers."

Furthermore, he also noted that it will increase the cost of living for common people in the country, especially those who are owners of small and medium enterprises as they will be adversely impacted by this level of exorbitant electricity charges.

Senator Aminu Tambuwal (PDP, Sokoto South) also contributed to the debate and said it is not normal that the government is trying to increase the electricity charges, especially when the country is already going through hardship.

Nigerians have been going through a tough time, especially after the Tinubu administration removed the fuel subsidy on May 29, which increased fuel and food prices across the country. The decision was made when the country was already reeling under the impact of demonetization.

Last year, the Trade Union Congress (TUC) asked the federal government to pay the N35,000 provisional wage award as promised during a meeting held after the fuel subsidy removal.

The senate's rejection came after Minister of Power Bayo Adelabu announced the government's plan to remove subsidy on electricity supply in a press briefing, noting that the country can't continue to subsidize electricity due to over N3 trillion indebtedness.