According to punch newspaper, the Nigeria Consumer Protection Network has cautioned the Federal Government against increasing electricity tariffs without first ensuring a significant improvement in power supply. The consumer advocacy group argued that raising tariffs would not resolve Nigeria’s persistent power outages, emphasizing that consumers across all bands are entitled to reliable electricity before any price adjustments are made.
Speaking in an interview, Kola Olubiyo, President of the Nigeria Consumer Protection Network, urged the government to reconsider its approach to the power crisis. He recalled how Nigeria celebrated a milestone of generating 5,600 megawatts of electricity in 2013, only for the achievement to be short-lived due to inadequate infrastructure. According to Olubiyo, the country’s power supply has consistently failed to meet its growing demand, making a tariff hike an insufficient solution.
“So, what it means is that an increase in electricity tariffs alone is not a silver bullet solution to the challenges of the power sector,” Olubiyo stated. He noted that the core issues plaguing Nigeria’s power system go beyond pricing, pointing to the fragile state of the national grid and the lack of substantial investments in infrastructure as key bottlenecks. He further explained that without addressing these underlying problems, any tariff increase would only burden consumers without improving service delivery.
Olubiyo raised concerns about the capacity of Nigeria’s national grid, warning that it would collapse if attempts were made to pick a load of 5,800 MW or 6,000 MW. “As I speak to you now, if you attempt to pick a load of 5,800 MW or 6,000 MW, the grid will collapse. I’m speaking to you in my capacity as a member of the Technical Investigative Panel on Power System Collapses,” he disclosed. His statement underscores the fragility of the national grid, which has struggled to maintain stability under current demand levels.
Despite the investment of over $10 billion in the power sector over the past decade, Olubiyo pointed out that Nigeria has been unable to add even 400 MW to the 5,600 MW peak achieved in 2013. This, he argued, questions the rationale behind any proposed tariff increase. “Even when this tariff is increased now, there’s no guarantee that it’s going to come with any improvement in power supply,” he added. Olubiyo emphasized that the focus should be on cost recovery through strategic investments rather than burdening consumers with higher costs without improved service.
The Nigeria Consumer Protection Network’s position has sparked a renewed debate on the future of Nigeria’s power sector. The group is advocating for comprehensive reforms aimed at enhancing power generation and distribution before considering any price hikes. As the government continues to explore options to address the nation’s power crisis, consumer advocates are urging a cautious approach to ensure that Nigerians receive reliable and affordable electricity.
SOURCE: obeynews