Ayo Ayalowo, a development economist, has urged President Bola Tinubu’s administration and the Nigerian Electricity Regulatory Commission (NERC) to abandon the energy pricing bands A, B, and C due to the lack of adequate power supply in the country. He made this statement during an interview on Channels Television.
Ayalowo highlighted that rising energy prices, such as electricity and diesel, are significant contributors to Nigeria’s escalating inflation. He suggested that the government should reevaluate the recent 240% electricity tariff increase for Band A customers receiving only 20 hours of power supply.
The economist emphasized that despite the tariff hike, Nigerians are still not receiving the promised power supply. He recommended that NERC should reassess the tariff structure and abandon the current band classification system. Instead, he proposed a marginal increase in tariffs for all electricity customers nationwide.
Ayalowo criticized the current approach of increasing tariffs only for Band A customers, arguing that it is unfair and does not address the broader issue of inadequate power supply. The electricity tariff hike, announced on April 3, 2024, by NERC, increased the price from N66 to N225 per kilowatt-hour for customers in Band A. This decision was met with widespread opposition from Nigerians and various organizations, including the Nigeria Labour Congress and the Trade Union Congress.
As a result of the tariff hike and ongoing power supply issues, the country has experienced frequent grid collapses, leading to nationwide power outages. The Transmission Company of Nigeria (TCN) has attributed the most recent collapse to a fire incident, which has since been resolved.
