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NBA gives FG 7-day ultimatum to reverse electricity tariff hike

The FrontierThe FrontierApril 30, 2024 2982 Minutes read0

In a bold stance against what it terms exploitative and anti-people policies, the Ikeja Branch of the Nigerian Bar Association (NBA) has issued a seven-day ultimatum to the federal government to reverse the hike of electricity bill or face a lawsuit.

The move comes amidst widespread public outcry over the drastic increase in electricity costs, which has left many Nigerians grappling with the burden of inflated bills amid economic challenges, reports Daily Independent.

The branch Chairman, Mr Seyi Olawunmi made this known while addressing the press today at the at the Ikeja Bar Center.

He noted that the National Electricity Regulation Commission (NERC) order made in respect of the electricity tariff hike is anti-people, noted that the tariff smacks of the policy of a government has lost touch with the daily realities of its average citizen.

He noted that the position of NBA Ikeja branch is that, ”if the government and concerned individuals fail to reverse the illegal hike of electricity tariffs within seven days, the branch will be left with no choice than to seek appropriate remedies in the court of law.”

Olawunmi recalled that in December, 2023, NERC issued a new Multi-Year Tariff Order (MYTO 2024) which indicated a purported cost-reflective tariff chargeable by the various Electricity Distribution Companies (Discos).

He said that a large chunk of the increased tariff was however reportedly absorbed by the Federal Government under a subsidy arrangement.

The branch Chairman said that the purported subsidy has now reportedly been removed by the Federal Government, leading to an over 300% increase in the electricity tariff payable by the end-user, the Nigerians under a curious band-derivative tariff charging model.

According to him, “We view this sudden astronomical increase in the end-user tariff, irrespective of the technical arguments preferred in justification, as utterly exploitative and non-reflective of the current economic hardship that the masses of Nigerians are going through.”

NBA said that the inflation and the depreciation of the Naira to the dollar has affected their services and that it is practically impossible to remain on the old tariff. Added the electricity in Nigeria is not well priced.

The NBA therefore demands, “immediate stop to the illegal implementation of the 225 Naira per kWh imposed on their so called band A customers at the discretion of both the Discos and NERC without any empirical basis.

“The classification into band A or B or C or D or E should be scrapped. It’s either the Discos are guaranteeing 24 hours supply for all or they are not. The government and the Nigerian people cannot continue to subsidize their inefficiency in the name of band A or B or C.”

While voicing their strong objections to the tariff hike, labeling it as insensitive and out of touch with the daily realities faced by the average citizen, the NBA Ikeja Branch argued that the timing of the tariff adjustment, amid rising fuel prices and depreciating purchasing power, exacerbates the financial strain on already struggling households.

They said, if the government fail to reverse the illegal hike within seven days, they will seek appropriate remedies in the court of law.

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Electricity tariff hikeFGgivesNBAreverseultimatum
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