Nigerian Senate Begins Probe Into Hike in Electricity Tariff

The Nigerian Senate has begun investigating the hike in electricity rates in eleven states.

During Monday's meeting at the Senate-wing National Assembly, the Red Chamber threatened to punish any person or organisation determined to be responsible for increasing Nigerians' hardships and sufferings.

The Senate's committee on power invited Adebayo Adelabu, the minister of power, and the leaders of the ministry's agencies to an investigative hearing on the new electricity tariffs last week.

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The committee chairman, Senator Eyinnaya Ababribe, said that the Senate has already authorised an investigative hearing "scheduled for April 29, 2024. The major agencies of government will answer questions."

He said, "We have summoned the National Electricity Regulatory Commission (NERC). We will allow them to speak about the electricity tariff hike. The minister of power is, of course, expected to appear too."

During the Monday investigative hearing, the committee chairman said that two motions presented at the plenary on Tuesday, July 25, 2023, and Wednesday, February 21, 2024, were the main points of contention. The Senate directed the Committee on Power to "engage with the Federal Ministry of Power, Nigerian Electricity Regulatory Commission, and other stakeholders" through its resolutions.

Abaribe also stated that the committee's mandate was to find lasting solutions to the Nigerian Electricity Sector's challenges, including the need for "comprehensive sector reforms."\

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He added, "We are also to investigate the over N2tn subsidy requirement as stated by the Minister of Power to avoid the repeat of fuel subsidy scenario and the statement made by the Honourable Minister about the N1.3tn the Ministry is owing generating companies and 1.3 billion dollars owed to gas companies, (which I believe has increased as at today),

"Investigate the role of the Ministry of Power, NERC, and ZIGLAKS COMPANY on their failed agreement to provide meters and ensure Nigerians are not shortchanged."

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The committee at the hearing also sought electricity stakeholders' answers on when "NERC migrated from the previous customer classes of Residential (RI, R2, R3), commercial (C1 and C2) and Demand (D1 and D2) to the present BANDS (A, B, C) for electricity customers."

He added, "Let me right from the onset and restate the determination and commitment of the Committee and indeed that of the 10th Senate to stringently carry out this assignment as a matter of urgency to alleviate the sufferings of Nigerians and that we will not hesitate to sanction anybody or any agency found culpable."
Back Story
In January, the federal government announced that it was reviewing the implementation process for a cost-reflective electricity tariff. Still, it stated plans to continue subsidizing power supply for vulnerable Nigerians.

The FG also said it would unbundle the Transmission Company of Nigeria by separating Transmission services from System and Market operations in Q1 2024.

This plan was revealed by the Minister of Power, Chief Adebayo Adelabu, in a statement issued by the Federal Ministry of Power in Abuja. The Minister said that the key to long-term power transmission in the country is to separate the power transmission grid into regional grids to enable effective management.