By Anwuli Oseloka
The Nigerian government recently approved N225 ($0.15) per kilowatt from 66 naira per kilowatt for Band A electricity consumers in the country. This is as a result of Tinubu’s reform agenda of removing electricity subsidies. The World Bank has in the past recommended subsidy cuts to help Nigeria improve the state of its public infrastructure.
However, this reform now inclusive of the hike in electricity tariffs has increased inflation to more than 30% and worsened the cost of living for the average Nigerian.
Nigerians are really worried because Band-A electricity tariff hike equally means higher monthly expenses. With electricity being a fundamental necessity for daily living, the increased tariffs strain already tight budgets.
Ikejabird took to the streets of Ikeja to seek how citizens are reacting to the recent electricity price increment.
Tomison a tailor said, “this is not fair, how are we going to survive like this. We rarely get light and as a postpaid customer the bills I receive monthly is terrible. Now with this increment what would happen to me.”
A Teacher who pleaded to remain anonymous said “Tinubu is rushing everything. Within how many months fuel subsidy was removed, dollar increased which led to increase in items we buy, we have not recovered from that now electricity bill. This is not what we deserve. He might have good intentions but do it gradually. Does he think of those doing menial jobs to survive daily?”
According to Kikelomo, a sales representative, “It is well, because with all that is happening, there is yet to be an increase in minimum wage for workers. All we are hearing is increase in things that are negatively affecting us. I do not know precisely what the impact of all this would be on the long run but at least let Tinubu’s administration increase minimum wage for its Citizens too.”
A Jewelry business woman said, “Travelling in and out of the country has not been easy. Importing items with the exchange rate has been affecting my business because I have to increase the price of my jewelries and it has led to reduction in sales. With this light tariff increment, we Nigerians at this point need to speak up. Postpaid customers would end up carrying this burden. We all know how it has been, I do not need to say much. How many houses have meter? You know the answer. I can imagine what bigger industries would be paying for electricity bills. I just pray they do not pack up with all that is happening at once in this economy.”
It is obvious price of items would get higher again because an increase in production leads to increase in price of the item.
The National Union of Electricity Employees (NUEE) on 7th of April has condemned the decision by the Nigerian Electricity Regulatory Commission (NERC) to raise tariffs for customers enjoying extended power supply (Band A classification).
In a statement signed by National President Adebiyi Adeyeye (NUEE) “This decision blatantly disregards the economic struggles of Nigerian workers, especially considering the uncertain minimum wage situation.”
Nigerians are still trying to grapple with the electricity hike, and can only hope the government can adopt a few techniques used by other countries like Germany’s support for renewable energy and the US’s low-income household assistance programs to improve the cost and standard of living of their citizens.
