Nigerians to Pay More for Electricity Despite COVID-19

  • Nigerians to Pay More for Electricity Despite COVID-19

The Nigerian Electricity Regulatory Commission (NERC) will raise electricity tariffs on Wednesday in accordance with the December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020.

In the NERC December Minor Review, the commission said the order was “issued to reflect the impact of changes in the minor review variables in the determination of cost-reflective tariffs and relevant tariff and market shortfalls for 2019 and 2020.”

It said, “The Federal Government’s updated Power Sector Recovery Programme does not envisage an immediate increase in end-user tariffs until April 1, 2020, and a transition to full cost reflectivity by end of 2021.

“In the interim, the Federal Government has committed to funding the revenue gap arising from the difference between cost-reflective tariffs determined by the commission and the actual end-user tariffs payable by customers.”

Despite the ongoing locked down and expected economic, social and health consequences due to COVID-19 pandemic, the commission is yet to suspend this agreement as of Tuesday, March 31, 2020.

While it is unlikely agreement will be implemented on Wednesday, a reliable source at Ikeja Electric, said the firm had not received any directive from NERC to disregard the new tariff plan scheduled for tomorrow.

He said, “According to the tariff order for the year, we are supposed to increase on April 1, 2020. So far, we have not received any directive not to go ahead.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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