Tariff Hike: “Scrap Bands A, B, C Nonsense” – Economist, Ayalowo Tells Tinubu, NERC

Ayo Ayalowo, a development economist, has emphasized the need for President Bola Tinubu’s administration and the Nigerian Electricity Regulatory Commission to abandon bands A, B, and C due to the insufficient power supply experienced by Nigerians.

This statement was made during an interview on Channels Television on Tuesday. Ayalowo highlighted that the escalating prices of energy sources, such as electricity and diesel, significantly contribute to the high inflation rates in Nigeria.

He suggested that the government should reconsider the recently announced 240% increase in electricity tariffs for Band A customers who receive 20 hours of power supply.

Ayalowo emphasized that despite the tariff hike, Nigerians are still not receiving adequate power supply.

He stated:

“The energy prices, especially this Band A, Band B, and C nonsense, need to be jettisoned. And a sensible approach must be taken so that Nigerians can enjoy electricity at a reasonable cost. NERC needs to go back and rejig the tariff and stop the nonsense band classification because Nigerians are still not getting power supply”, he stated.

He suggested that the government should increase tariffs marginally for electricity customers nationwide.

“I will suggest that the Minister of Power and Nigerian Electricity Regulatory Commission would have increased tariff marginally across the board, not cheating Paul to pay Peter as they are doing”, he added.

On April 3, 2024, NERC declared an increase in the electricity tariff to N225 per kilowatt-hour from N66 for customers in Band A. This decision faced criticism from various Nigerian groups, such as the Nigeria Labour Congress, Trade Union Congress, and other organizations.

The citizens expressed ongoing dissatisfaction with the decrease in power supply following the tariff adjustment. Subsequently, on Monday, the nation experienced a total blackout as a result of a national grid failure. TCN attributed the grid collapse to a fire incident and confirmed that power had been reinstated.

Meanwhile, The Northern Elders Forum (NEF) has expressed remorse regarding the support it gave to President Bola Tinubu in the 2023 presidential election.

The group vowed it would not make the same error in the future. In an interview with The Guardian, NEF spokesperson Abdul-Azeez Suleiman conveyed this sentiment, underscoring a contemplative approach to the region’s electoral decision.

President Tinubu, who ran as the candidate of the All Progressives Congress (APC), received significant votes from the northern region, surpassing his competitors.

However, the NEF now criticizes this choice, with Suleiman emphasizing the necessity for a more unified and consensus-driven process in selecting candidates for the country’s highest office.

The NEF’s reflection coincides with the observations of Peter Obi, the Labour Party’s presidential candidate in the 2023 elections, and his interactions in the north.