Gbenro Adesina
The leadership of the National Assembly has ordered the Electricity Distribution Companies (DisCos) in Nigeria not to increase electricity tariffs in July 1st as planned, stressing that there was no justification to do so this year.
The DisCos have initially agreed that electricity tariffs will go up with effect from July 1, 2020.
According to a statement signed by Ola Awoniyi, Special Adviser (Media) to President of the Senate, Senator Ahmad Lawan, the leadership of the National Assembly in a meeting held with the leadership of DisCos yesterday succeeded in convincing the DISCOs to defer the plan till the first quarter of 2021.
In attendance at the meeting were, Senate President, Ahmad Lawan, the Speaker of the House of Reps, Rt. Hon. Femi Gbajabiamila, principal Officers of the two Chambers, Chief Executives of the government electricity regulatory body and DISCOs and the Chairmen of the Committees on Power from the Senate and House of Representatives.
The National Assembly leaders were emphatic at the meeting that the timing of the planned hike was wrong, though, they did not have issue with the need to introduce a cost reflective tariffs for the power sector to attract the much needed investment.
In the course of the meeting, the DisCos also admitted that they were not well prepared for the planned hike in tariffs despite the fact that they desired the hike.
Lawal noted, “We are in agreement here that there is no question on the justification of the increase but the time is simply not right and appropriate measures need to be put in place. So between now and the first quarter of next year, our task will be to work together with you to ensure that we put those blocks in place to support the eventual increase in tariffs”.
Speaking, the Speaker of the House of Representatives, Hon. Femi Gbajabiamila noted that there was no justification in increasing the cost of electricity.
His words, “There cannot be a time as bad as this for us to increase anything. Forget about electricity, anything. Whereas, even in time of decreasing revenue, we are even reducing the pump price. I don’t know how we can justify an increase in the cost of electricity at this time in Nigeria”.
