Electricity subsidy non-existent, FG raising funds for cash-strapped DisCos — Falana

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Femi Falana, a human rights lawyer, claims that the Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), intends to extend the electricity pricing hike to Nigerians in other categories.

Falana, who spoke on Channels Television’s Sunday Politics, stated that the government’s recent tariff rise for Band A subscribers is unjustified under the Electricity Act of 2023. He threatened to go to court to demand restitution for Nigerians.

The Senior Advocate of Nigeria stated that the Federal Government had already abolished electricity subsidies in 2022, and that the recent pricing hike is forcing Nigerians to pay for the ineptitude and profligacy of those in charge of the electricity sector.

On April 3, 2024, NERC hiked the electricity cost for consumers who receive 20 hours of power each day. Customers in this category are classified as Band A. Customers would now pay N225 per kilowatt hour, up from N66 currently, a decision that has been strongly condemned by many Nigerians, given the immediacy of the rate hike and the current state of the economy.

Adebayo Adelabu, the Minister of Power, later stated that the new energy pricing hike will only effect 1.5 million of the sector’s approximately 12 million subscribers.

Falana, on the other hand, claimed that power subsidies do not exist and accused the administration of attempting to raise funds for cash-strapped electricity distribution firms (DisCos).

Falana stated, “Under that statute, there are certain procedures to follow, and we will begin those efforts tomorrow (Monday) by raising severe complaints to the impunity that has typified the recent escalation.

“If there is no response at the proper time, we will have to go to court because the government has warned, the minister has warned that the increase this time will only bring the government or the discos N1.6 trillion, when the destination is N3 trillion.

“So, the impoverished people that he (the minister) is talking about, the other bands, the government is going to extend the rises to them very soon so that the N1.4 trillion that the minister is talking about may be recovered.

“They (the government) are increasing tariff to assist the cash-strapped discos majority of which have now been taken over by the banks and AMCON, and the banks and AMCON have no competence to run electricity companies.”

Falana chastised the government for being insensitive to the plight of Nigerians who are still dealing with the economic consequences of the removal of petrol subsidies and the collapse of foreign exchange windows, two policies of President Bola Tinubu’s administration that have resulted in an unprecedented high cost of living.