“Hay God, Will I Be Paying More For Electricity By September?”

August 27, 2020

I’m already broke from all the girls I’m chasing, and so I’m really concerned if we will actually be paying more for electricity by September. But it turns out there’s no answer on Obasanjo’s internet for that. In fact, the more you look, the less you see – even if you’re wearing binoculars.

Backstory

So reports filtered in early Wednesday morning that the President had approved electricity tariff increase by September 1. Now, an electricity tariff increase was supposed to have gone ahead by April 1 this year, but it was moved to July because of the economic challenges caused by the Covid 19 pandemic and the opinion that Nigerians were cash-strapped (or broke) at the moment. The July tariff increase was later postponed to the first quarter of 2021 after the National Assembly met with the regulators and concluded that the “time was not right” because of, again, economic challenges caused by Covid 19.

Multi-Year Tariff Order

You may be wondering what soil these tariff increases grow from, and how they come about? Well, according to the Electric Power Sector Reform Act which was enacted in 2005 after NEPA was unbundled (bet you still say “UP NEPA”), the National Electricity Regulatory Commission (NERC) is empowered by Section 76 of the Act to establish a methodology for determining electricity tariffs within the Nigerian Electricity Supply Industry.

The NERC subsequently came up with what they called the “Multi Year Tariff Order” which is basically a 15 year effective pricing plan for Nigeria’s electricity industry, subject to review every 5 years – accounting for inflation, interest rates, exchange rates and generation capacity.

The last tariff increase was in 2015 and the next one was supposed to be this year – 2020. However: “men plan and Covid plans, but Covid is the best of planners”.

“And the borrower shall be a servant of the lender”

Ordinarily, and going by the facts above, we shouldn’t be seeing any electricity tariff increase till the first quarter of 2020 – which means I can go on with my lau lau spending. But Nigeria wants a $3 billion loan from the World Bank, and electricity tariff increases are reportedly part of World Bank’s conditions for giving this money. That meins, we die there.

I mean, the release from the NERC yesterday night says it all. The government does not want to increase electricity tariffs, but it also wants to fulfill loan conditions, and so it has come out with an ambiguous statement on how there will be no tariffs for the “poor and vulnerable” and how Buhari has directed an end to estimated billing and has ordered mass metering. The communique by NERC also stated the tariff increases will be conducted by the DISCOS on per customer basis. But when, at what specific price and at which electricity customer class, we still do not know.

All of this reminds me of the exact same issue we have with PMS where fuel subsidies have been removed but fuel prices are still being regulated. Instead of us to fix the underlying issues in a sector, we will rather paper the cracks. “Nigeria – my country, my country”.

Check back every weekday by 10am for more Zikoko Citizen stories.

Join The Conversation

Bring a friend.

You'll like this

April 17, 2020

As we may remember, Maryam Sanda was convicted and sentenced to death by hanging, for the murder of her husband – Bilyaminu Bello, in January 2020. With overwhelming evidence and the corroboration of a violent streak by a friend of Bello’s — he witnessed a vicious marital spat the day of the killing — Maryam […]

February 21, 2020

Nigerian nurses go through a lot and are unappreciated. They work long hours and earn anyhow wages. With that in mind, we asked them some of the things that must stop in 2020 and here’s what they said: 1) “I can’t show Nurse my bum bum.” Sorry ohhh. 2) “You’re a Nurse, that’s big money […]

October 29, 2019

Hmm… I don’t know who to point this finger at; whether the government, a certain cabal of people, the weather? But something is happening in Nigeria and … Let’s take a look at the issues. First, why do journalists keep getting arrested? Not even funny, but someone appears to be attempting the DMX challenge with […]

Watch

Now on Zikoko

Recommended Quizzes

November 4, 2019

After successfully predicting when y’all are getting married (please, email any complaints to noneofourbusiness@nayousabi.com), we are back to tell you how much is currently in your account. How, you might ask? By using your taste in Nollywood, of course. Shhh. No questions. Just take it already:

January 2, 2020

Do you have even a single romantic bone in your body? Well, if you’re not sure about just how sweet and thoughtful you can be to someone you love, that’s what this quiz is here to answer. 11 Quizzes For Nigerians Who Are Ready To Marry  Are you ready to marry? Take these quizzes.

October 30, 2019

2010 was a game-changing one for Nollywood, with our movies making serious cash and getting international acclaim. So, which of these hits released between 2010 and 2019 — from the pace-setting The Wedding Party to the divisive Trip To Jamaica — best suits your personality? Well, that’s what this quiz is here to answer:

November 22, 2019

It can be very stressful when you’re trying to find the love of your life, but you only keep meeting people that are exactly like your yeye ex. To help you be more aware of that problem, we’ve created a quiz that lets you know the kind of people you are attracting. Take it to […]

More from Citizen

January 28, 2022

Today’s subject on Abroad Life visited Seychelles in 2021 and got the shock of her life when the airport officials found out her nationality. She takes us through the ordeal she endured at the airport which went as far as digital privacy invasion and getting her passport seized, and why she decided not to leave immediately

Watch

Trending Videos

Zikoko Originals

December 14, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
November 2, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
October 26, 2020
A collection of videos documenting some of the events of the EndSARS protests.
June 22, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
June 22, 2020
Hacked is an interesting new series by Zikoko made up of fictional but hilarious chat conversations.
June 4, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
June 2, 2020
Quickie is a video series where everyone featured gets only one minute to rant, review or do absolutely anything.
May 14, 2020
Isolation Diary is a Zikoko series that showcases what isolation is like for one young Nigerian working from home due to the Coronavirus pandemic.
March 12, 2020
Life is already hard. Deciding where to eat and get the best lifestyle experiences, isn't something you should stress about. Let VRSUS do that for you.

Z! Stacks

Here's a rabbit hole of stories to lose yourself in:

Zikoko amplifies African youth culture by curating and creating smart and joyful content for young Africans and the world.
X