Electricity Subsidy Non-Existent, FG Raising Funds For Cash-Strapped DisCos — Falana

Human rights attorney Femi Falana claims that the Federal Government intends to raise energy rates for Nigerians classified under other bands in addition to Band A customers through the Nigerian energy Regulatory Commission (NERC).

Falana, a guest on Channels Television's Sunday Politics, asserted that the Electricity Act, 2023 does not justify the government's recent tariff rise for Band A customers. He declared that he will take Nigerians to court to get justice.

According to the Senior Advocate of Nigeria, Nigerians are being forced to foot the bill for the incompetence and waste of those in charge of the electrical industry since the Federal Government eliminated electricity subsidies in 2022.

The electricity cost for clients that receive a 20-hour daily power supply was increased by NERC on April 3, 2024. Clients falling into this group are referred to as Band A customers. Customers would now pay N225 kilowatt per hour instead of the current N66, a development that has drawn harsh criticism from many Nigerians given the urgency of the pricing hike and the ongoing hardships in the country.

Following this, the Minister of Power, Adebayo Adelabu, declared that just 1.5 million of the roughly 12 million customers in the sector would be impacted by the new electricity pricing increase.

But Falana said there was no electricity subsidy and said the government was seeking to generate money for cash-strapped distribution corporations of electricity (DisCos).

According to that law, there are specific actions that must be taken, and we will start those actions tomorrow (Monday) by raising strong objections to the impunity that has been a defining feature of the current escalation, Falana declared.

The government and the minister had warned that this time around's rise would only bring in N1.6 trillion, not the N3 trillion that was intended, therefore if there is no response at the proper time, we would have to take the matter to court.

In order to recover the N1.4 trillion the minister is referring to, the government will very soon extend the hikes to the other bands, who are the impoverished people he (the minister) is talking about.

"They (the government) are raising tariffs to help the financially struggling discos, most of which have now been taken over by AMCON and the banks, who are not qualified to manage electricity companies."

Falana criticised the administration for being indifferent to the suffering of Nigerians who are still coping with the financial fallout from the removal of petrol subsidies and the failure of the foreign exchange windows—two measures taken by President Bola Tinubu's administration that have led to an unprecedentedly high cost of living.