Experts have called on the Nigerian Electricity Regulatory Commission (NERC) to address inefficiencies in the power sector rather than resorting to another electricity tariff hike.
A strategy and public policy expert, Opeyemi Agbaje, on Monday, echoes the sentiment while reacting to the news of a potential tariff hike come October 2024.
Sources familiar with the development had noted that a surge in the country’s power subsidy to N181.63 billion in September could lead to a review of tariff in October.
The CEO, RTC Advisory Services Ltd, argued that the inefficiency of electricity regulators and widespread electricity theft are major contributors to the financial challenges in the sector.
He noted that instead of increasing tariffs, focus should be on strategically eliminating the 37% commercial loss currently burdening the industry.
He said, “There is no need for increasing tariffs because of the foreign exchange instability.”
He urged NERC and other stakeholders to distribute more prepaid meters to necessary places to serve as an increased income in the sector rather than increasing the tariff.
“Only 37% of electricity customers were metered in 2023, which indicates a gap in capturing a significant portion of the population,” he said.
The possible tariff hike stems from the rising cost of electricity subsidies, which reached N181.63 billion in September 2024, up from N102.30 billion in May.
Agbaje warned that without addressing inefficiencies and curbing losses, consumers would continue to bear the financial burden through continuous hikes in electricity tariffs.
