Given the current economic hardship occasioned by hunger, food scarcity, and high inflation rate amongst others, hope seems to elude Nigerians on many fronts. Not discounting the harsh climate conditions, the epileptic power supply nationwide worsened by the recent hike in the cost of electricity by over 300 per cent, has only exacerbated the already sorry state of common Nigerians, Sunday Ehigiator writes
“My life is over. Nigeria has happened to me. Where do I begin? These are goods worth over N5 million which I was supplied yesterday evening. They are all spoiled.
“When they were supplying me the goods, there was light but they took it before they finished offloading the goods from the truck. So I closed at around past 8 and left all the freezers with the hope they would restore power from 10 pm to 10 am as they used to do.
“Mind you today is Thursday, due to the environment in Lagos state every Thursday I don’t come to shop till 11 am. Also, I took that time to do some house chores, so I didn’t get to shop till 2 pm the next day. Only for me to get to shop, open the freezer and be confronted by the offensive smell of spoiled fish and turkey.
“They didn’t restore power since the time they took it before I left the shop. Now all my goods which I am yet to fully pay for have all been spoiled. Where do I start from?
“My name is Imisi Ogunlano, I sell frozen foods such as fish, turkey, gizzard and chicken here at Mile 12 market.”
The poor electricity supply being experienced across the country has worsened the situation for many businesses and Nigerians at large.
Ogunlano’s experience reflects the current situation of many business entities that solely depend on power to operate in Nigeria.
Impact on business
The lack of power supply has increased production costs for many businesses forced to provide their electricity, mostly using diesel-run generators as alternative sources of electricity.
While some who can’t afford to fuel their generator to run for at least a minimum of 15 hours a day are already out of business, others who can are battling with low patronage due to the cost implication of the high cost of fuel, dollar rate, inflation, etc. on their goods or services.
In June 2015, Nigerian manufacturers said they spent as much as N3.5 trillion annually to generate alternative power for their production operations due to the collapse of the public electricity supply.
In June 2023, the Manufacturers Association of Nigeria (MAN) said it loses N10.1 trillion annually to a power crisis, just as the World Bank said that Nigeria will need about $100 billion in the next 10 years to tackle the challenges in its energy sector.
Power supply at an all-time low
Electricity supply in Nigeria is currently at its all-time lowest. Across social media platforms, Nigerians have lamented the epileptic power supply and on many occasions have called out the nation’s Minister of Power, Adebayo Adelabu, and accused him of being clueless.
On Sunday, February 4, 2024, Nigeria’s electricity grid collapsed yet again, throwing several cities including the nation’s capital Abuja, into darkness.
According to the Abuja Electricity Distribution Company (AEDC), the collapse was a “result of a system failure from the national grid at 11:21 am today, February 4, 2024, which has led to a nationwide power outage.”
The latest collapse occurred less than two months after the national grid system collapsed in December and Nigerians were thrown into darkness.
In recent years, Nigeria’s power sector has experienced broad challenges such as electricity policy enforcement, regulatory uncertainty, gas supply, transmission system constraints, and major power sector planning shortfalls.
On February 2, the federal government attributed the main cause of poor power supply in the country to the low supply of gas to Generating Companies (GenCos).
Nigeria’s Minister of Power, Adelabu, who disclosed this in a statement, said “Power supply during the yuletide improved, but unfortunately, we’ve experienced setbacks in the New Year. After investigations, it’s clear that the main cause of poor power supply is the low supply of gas to GenCos.”
Nigeria has struggled with poor power supply for decades, a challenge that is estimated to cost businesses about $29 billion yearly, according to the World Bank.
The country has the lowest access to electricity globally, with about 92 million persons out of the country’s 200 million population lacking access to power, according to the Energy Progress Report 2022 released by Tracking SDG 7.
Also, a World Bank report in 2021 revealed that a total of 74 per cent of power users in the country are dissatisfied with the supply of electricity across the country while 93 per cent of metered power users paid their bills regularly, 78 per cent of electricity consumers in the country received less than 12 hours of power supply daily.
Earlier in February 2024, women protested at the office of the power distribution company in Port Harcourt, saying their husbands no longer make love with them at night due to excessive heat and poor power supply.
Many also lamented the high cost of fuel which is the consequence of the removal of subsidy on petroleum products by President Bola Tinubu. The high cost of fuel has denied many the opportunities to provide electricity through generator sets.
Indeed, Nigerians are displeased with the worsened power situation in the country which the heatwave has worsened occasioned by the harsh climate conditions.
Concerning heatwaves in Nigeria
The weather all over the country has been relatively hot for over two months. Some Nigerians had joked about someone forgetting to lock the gate of hell, or Nigeria sharing a boundary with hellfire or moving several steps towards the sun.
While many complained of not sleeping at night and having to enter the shower severally to soak their body in water, which is also warm, some others were captured on social media wetting their beds with large buckets of water before lying down and still waking up on a dried bed.
The worst part for Nigerians is the lack of electricity supply by the Power Holding Company of Nigeria (PHCN) to power their Air Conditioner (AC), which a normal 220 KVA generator cannot power.
Nigerians now attribute the Air Conditioner (AC), as a luxury, as it is the only solution to the heatwave, after being frustrated with fans, which are now also blowing hot air.
Despite the rain recorded for a few days, February has never really been a cold month in Nigerian cities. However, temperatures have never been this bad.
In previous years, according to an online resource, Weather to Travel, the average temperature in Lagos in February for a typical day ranged from a high of 85°F (30°C) to a low of 78°F (25°C).
For comparison, the hottest month in Lagos, March, has days with highs of 85°F (30°C) and lows of 78°F (25°C), but March, 2024 saw temperatures rise to as high as 39°C and even peaked at almost 40°C.
NiMET’s warning
On Saturday, April 6, 2024, The Nigerian Meteorological Agency (NiMET) issued a weather prediction alert, warning of the likelihood of heat stress and thunderstorms across various parts of the country.
The agency made the predictions in its Weather Report released in Abuja.
According to NiMet, the heat index over Nigeria is expected to soar, with strong prospects of heat stress in many regions, urging the public to take necessary precautions.
The agency emphasised the importance of staying well-hydrated and avoiding strenuous physical activities, especially during the peak hours between 12 noon and 4 pm.
It added, “Wear shades and hats when you’re outdoors and keep the infants well aerated.”
Hike in electricity tariff
Despite the massive drop in electricity supply, preceding protests, current heatwaves and the hardship the drop in supply and the heatwave have brought on business entities in the country and Nigerians at large, on April 1, 2024, like it were an ‘April Fool’ joke, the Nigerian Electricity Regulatory Commission (NERC) ordered the immediate upward review of electricity tariffs, effective from April 3.
The NERC Vice Chairman, Musiliu Oseni, disclosed this while speaking at a press conference in Abuja.
Mr Oseni explained that only electricity customers in Band A would be affected by the increase.
He noted that the increase would not affect Bands B, C, D and E while noting that the number of customers previously on Band A has been reduced.
Band-A customers are offered an average daily electricity supply of 20 hours, although many complain they do not get up to that.
The official said the Band A consumers represent 15 per cent of the population but consume 40 per cent of the nation’s electricity.
According to him, power distribution companies (DisCos) will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from the initial N68.
NERC a ‘Double Speak’?
NERC had in January said the Nigerian government will pay as much as N1.6 trillion to subsidise electricity in the year 2024.
Unveiling a new electricity tariff plan payable by electricity consumers in the country at the time, the Chairperson of the NERC, Sanusi Garba, said the order states appropriate tariffs that consumers should pay for investors to recover their operating costs.
Mr Garba explained that the order contains the federal government’s policy on ensuring that due to the cost-of-living crisis, consumers will not be made to pay higher than the previous rates.
“The order seeks that prices charged by DisCos are fair to customers and are sufficient to allow DisCos to fully recover the efficient cost of operation, including a reasonable return on the capital invested in the business under section 116 of the Electricity Act 2023,” Mr Garba said.
He added that the tariff order contains the appropriate tariff that DisCos should be charging if they are to remain in business while noting that the rates are very clear.
Abuja Disco (AEDC) defiance of NERC order
In defiance of the order by the Nigerian Electricity Regulatory Commission (NERC), that the upward tariff review only affects Band A customers, Abuja Disco, also known as Abuja Electricity Distribution Company (AEDC) affected over 300 per cent increase across all the Bands, thereby prompting immediate reactions from its customers and the NERC.
AEDC apologise
Apologising in a statement on Thursday, the AEDC said it was aware of the wrong charges faced by some Band A customers who tried to recharge their meters following the new tariff regime.
“This is to inform customers across the Abuja Electricity Distribution Plc (AEDC) franchise that we are aware of the wrong charges faced by some Band A customers who tried to recharge their meters following the new tariff regime.
“This was due to a system glitch caused by the reclassification of some Band A Customers who have now been downgraded to Band B due to the number of hours of electricity supply enjoyed over the past few weeks.
“These erstwhile Band A customers who vented were charged the new tariff of N225 per Kilowatt Hour. Our team is working to identify the customers affected and all excess charges will be refunded,” it said.
It said the situation also saw some Band A customers who are now charged N225 vend at the old rate. Once the glitch is resolved, the AEDC said this category of customers will now recharge their meters at the new rate of N225, which will ensure they enjoy a minimum supply of 20 hours daily.
Sanction
However, NERC, in its statement on Friday, said it has taken enforcement action against the AEDC for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC.
“This decision follows a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices,” the commission said.
The commission mandated AEDC to reimburse all customers in Bands B, C, D and E respectively who were billed above the allowed customer categories/tariff bands provided in the Order.
“Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.
“Pay the sum of N200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order and file evidence of compliance with the directives in a & c with the commission by 12 April 2024,” the electricity regulator said.
“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector,” the statement said.
NERC orders DisCos to set up a portal for customers to check their Band status
Consequently, the Nigerian Electricity Regulatory Commission (NERC) directed all the 11 DisCos in the country to create an online portal for their customers to access their Band category status.
In a statement on Saturday by the DGM of the commission, Abba Terab, NERC noted that the electricity Distribution Companies must set up the online portal on April 10, 2024.
In addition, Terab instructed the DisCos to promptly publish on their websites the timetable for approved Band A feeders impacted by the rate adjustment.
According to NERC, customers who have been overbilled at the new rate must receive a refund via energy tokens by Thursday, April 11, 2024, while DisCos must submit proof of compliance to the Commission by April 12, 2024.
Power Minister slams Nigerians for wasting power by ‘leaving freezers on’
The Minister of Power, Adebayo Adelabu, on Friday, lampooned Nigerians for poor power management despite the appalling supply across the country.
Adelabu made this claim during a press briefing on Friday while explaining the reasons for the recent hike in electricity tariffs.
In his explanation, the Minister blamed Nigerians, saying, “A lot of people will come back from work and they want to have dinner or they want to play with their colleagues down the road, they switch on the AC for the room to be cooled before they come back.
“Some people will be going to work in the morning and their freezers are left on for days when all their items are frozen. This is because they are not paying enough.
“We have all been overseas before, we know how conscious the power consumers are to consumption of electricity, this will enable us to manage consumption.”
Power Minister comes under fire, as Nigerians call for his sack
Reacting to the minister’s comment which went viral on X, an X user, identified as Olamide Obe, said, “I’m not capping, this Bayo Adelabu guy is the worst ever minister of power Nigeria has ever had.
“He is just saying gibberish here, or better still, I’d say he is saying sour nonsense, not any bitter truth like he opined. Oyo State dodged a bullet by ditching him for Seyi Makinde in 2019.
“For over two years that I’ve lived in my current house, my energy bill (electricity + gas) has been fixed at £146/month until it was recently increased to £190/month just two months ago.
“During summer, I consume less energy but during winter, I consume more because I’ve to turn on the heater to keep the house warm. I have a smart meter in my house but I chose to have a fixed monthly billing.
“Every six months, my service provider does an energy audit and gives me a refund if I’ve overpaid more than my actual energy consumption. I’ve gotten a refund three times now.
“On this £146/month bill, I power a 50″ smart TV, Internet router, a deep freezer, one upright fridge/freezer, a table size fridge/freezer, washing machine, dishwasher, microwave oven, electric oven, laptop computer, electric boiler, electric pressing iron, electric pressure cooker, ninja food processors, electric air fryers, juicer, toaster, electric jug, blender and lots of electric bulb.
“I’ve never turned off my freezer for one day. The reclining sofa set in my lounge also uses electricity.
“I use electricity 24/7. I’ve never experienced an outage of electricity or a shortage of gas supply in over two years. Give Nigerians uninterrupted electricity supply, you are here saying nonsense about consumption management. Rubbish. I blame Nigerians who keep electing nonsense.”
Another user identified as Pastor Marvy wrote, “Adelabu is not doing himself, his governorship ambitions, and this Tinubu administration any good by remaining the Minister of Power. He needs to resign that position.”
Another user identified as Tosin Olugbenga, said, “Tinubu has the penchant of discovering talent. This is the worst Minister of Power in the history of Nigeria. Look at what the empty-brain talent is saying. “
Another user identified as Temmie D1, said, “@officialABAT, remove the Ibadan man you appointed as power Minister now! He should not even have a place at the next FEC meeting.”
Another user identified as Uncle Olu wrote, “You saw your Minister of Power holding a Power bank, and you didn’t go and buy your own.
“You’ve forgotten that The death that killed your close neighbour is only sending a proverb to you. Better go and buy a power bank.”
Another user identified as Ainà Dipo, wrote, “Dear Minister @BayoAdelabu, your carrot and stick approach is illogical. I don’t know if you’ve done your research well, but within a few hours here’s what I found.
“Out of the 42 million households in Nigeria, only 25 per cent of this household uses Air Conditioner (AC). Only 22 per cent of these households use refrigerators.
“Sir, nobody will turn off their refrigerator, because there’s no certainty of constant electricity. And even if there will be a power outage at the discos, in most cases we are to be informed of this problem, like it is done in other countries.
“You should be more worried about the inflorescence 100 watts bulbs installed all around the country, mostly in low-density housing areas in Nigeria which is estimated to be about 70 per cent of the total household of our nation.
“Most honourable Minister with all due respect, resign if you’re tired of this job.”
Another user identified as FS Yusuf, wrote, “Countries that don’t have half the natural resources we have are experiencing 24-hour power supply. In Nigeria, our Minister of Power is telling us to turn off our freezers at Night to manage the 2 hours of light. Nigeria is not a real place.”
Labour strongly warns FG
The decision by the Federal Government (FG) to increase electricity tariffs has faced a very strong condemnation by the Nigerian Labour Congress.
The NLC told the FG to prepare for the consequences of the tariff hike, which it described as wicked and unpopular, stressing that since the government preferred to listen to the World Bank and International Monetary Fund (IMF); it should be ready to face the consequences.
Speaking to journalists, The Head of Information, at NLC, Benson Upah, said, “We did say earlier that this tariff hike is insensitive and unpopular. So if the government elects to continue with the hike or persist in something evil, I’m sure it is equally prepared for the consequences of that evil.
“The manufacturers are saying this is going to hurt businesses and make the environment more hostile, and we also said so. There is no place in the world where high power tariffs have supported manufacturing. Not even in the developed world.
“So, it completely beats our imagination for the minister to have the audacity to say that the policy would continue. What this means is that the minister and the President are not in charge. It is saddening that the minister elected to pursue an unpopular policy.
“It shows that the minister and the President are not in charge. The people in charge are the World Bank and the IMF. They are the ones driving this highly injurious policy. So, our leaders should be prepared for the consequences of this highly injurious policy. That is what I’ll say about this issue for now.”
Atiku condemns hike
Former Vice President of Nigeria, Alhaji Atiku Abubakar, has warned the Federal Government that Nigerians will suffer more with an increase in electricity tariffs.
Atiku said in a statement he signed on Friday that the increase in electricity tariffs would exacerbate the citizens’ hardships, particularly as inflationary pressures were on the rise.
According to him, “As usual, the government is unleashing another dose of reforms without adequate notice and without an adequate post-reform plan to mitigate the pain.
“The increase in electricity tariff comes at a time when Nigerian citizens are going through excruciating difficulties occasioned by the withdrawal of subsidy on PMS and floating of the domestic currency.
“The government has not successfully dealt with the pains associated with the implementation of those measures, and now this. The hike in electricity tariff will create more difficulties for the citizens as inflationary pressures are elevated. Our manufacturing sector will similarly be impacted negatively.
“Not only are they paying higher interest rates on their bank loans, but also paying more for diesel, and paying higher wages as a result of the new minimum wage. The President’s men are pushing the economy into a deeper crisis. His reforms are without a human face.
“It is important that we understand the root cause of the inefficiencies in the power sector before unleashing another dose of reforms. It is time to revisit the privatisation exercise that produced the Discos.
“Tinubu must (a) ensure that these reforms are sequenced, (b) implement measures to mitigate the pain, and (c) hold the NERC responsible for ensuring improved service delivery.”
Lawmakers fault hike
The Minority Caucus of the House of Representatives called on the Federal Government to prevail on NERC to cancel the recent increment in electricity tariff across the country.
In a statement issued in Abuja on Friday, the Minority Leader of the House, Kingsley Chinda, described the hike as inhuman and evil for placing an unbearable burden on the already strained populace, thereby exacerbating economic hardships and widening the chasm of inequality.
The statement read in part, “We urge Mr President, Bola Tinubu to prevail on the electricity regulator, NERC, to rescind this decision and prioritise the welfare of the people.
“Transparent dialogue and inclusive decision-making processes are imperative to address the root causes of the energy sector’s inefficiencies and ensure sustainable solutions that benefit all stakeholders and not consistent and persistent increase in tariff.
“We call for increased accountability and transparency in the management of resources within the electricity sector. Citizens have the right to demand efficient service delivery and fair pricing mechanisms that align with their economic realities.”
Northern Elders Forum (NEF) expresses disappointment
The Northern Elders Forum (NEF) has expressed deep concern and disappointment over the recent decision by President Bola Ahmed Tinubu’s government to sharply increase electricity tariffs in Nigeria.
In a statement issued by its director of publicity and advocacy, Abdul-Azeez Suleiman, NEF said, “This reckless move displays a complete disregard for the well-being and welfare of the Nigerian people.”
The NEF said it recognises that the drastic increase in electricity tariffs will have a significant negative impact on the already struggling population, further exacerbating the gap between the rich and the poor.
It stated that a breakdown of the new tariffs reveals an alarming burden that the average Nigerian will face in using electricity daily.
“Under the new tariff plan, 24 hours of electricity per day will cost a staggering N5,400, amounting to an unbearable monthly total of N162,000, and an astounding yearly total of N1,971,000. These exorbitant amounts are simply unaffordable for the majority of Nigerians, who are already grappling with economic hardship and trying to make ends meet.
“By implementing such exorbitant electricity tariffs, the government is effectively perpetuating a form of economic oppression that will only serve to widen the gap between the rich and the poor in Nigeria. This act of exploitation must be firmly rejected and not be allowed to stand unchallenged.”
NEF further averred that the decision to implement these tariffs without considering the impact on the average citizen is not only callous but also short-sighted, adding that the resulting consequences could potentially lead to internal security threats as the disparity between the haves and the have-nots becomes more pronounced.
According to the Forum, the decision was made without carefully considering the economic realities faced by the majority of Nigerians and it highlights the government’s lack of empathy towards its citizens.
The Northern elders said instead of implementing policies that would alleviate the suffering of the people, the government has chosen to exploit them further, emphasizing that the introduction of exorbitant electricity tariffs is not only unjust but also a clear indication of the disconnect between the government and the people it was meant to serve.
SERAP: Electricity is a fundamental human right
Reacting to the hike, the Socio-Economic Rights and Accountability Project (SERAP), has described electricity as a fundamental human right, while also urging the leadership of the National Assembly to urgently sponsor a resolution to condemn the FG for the hike in electricity tariff.
In a series of tweets on its X account, SERAP noted that “Millions of Nigerians continue to live in darkness despite the spending by governments of trillions of naira as investments and bailouts to electricity companies.
“Regular and uninterrupted access to electricity is a fundamental human right. Electricity is an essential public service but millions of Nigerians continue to pay the price for corruption in the electricity sector–staying in darkness.
“We urge the leadership of the National Assembly to urgently sponsor a resolution to condemn the Federal Government for the hike in electricity tariff and to ask President Tinubu to immediately reverse the unlawful increase. Reverse unlawful hike in electricity tariff.”
