The Senate at its plenary session on Thursday, 16th May 2024 suspended the approval of the recommendations from the investigative hearing on the proposed electricity tariff hike by the Nigerian Electricity Regulatory Commission (NERC) conducted by its Committee on Power.
Presenting the investigative report on the proposed electricity tariff hike by NERC, the Chairman of the Committee, Sen. Eyinnaya Abaribe (APGA: Abia) informed the Senate that the investigation was initiated following significant public outcry on the fairness and timing of the proposed tariff increase. Sen. Abaribe outlined the findings from the investigative hearing which highlighted several critical areas of concern.
Firstly, the report revealed discrepancies in the subsidy requirements claimed by the Ministry of Power raising questions about the financial management and transparency within the power sector. The report also scrutinised the use of funds allocated for prepaid metering, noting that despite significant allocations, many consumers were still not provided with prepaid meters leading to estimated billing practices that are often arbitrarily inflated.
Furthermore, the report emphasized the economic hardship the tariff increase would impose on Nigerians as the country already grapples with high inflation and economic instability. The Committee therefore recommended that NERC suspend the ongoing implementation of the hike in electricity tariff to allow for robust consultations with stakeholders.
However, the Senate decided to suspend the approval of the recommendations made by the Committee due to an ongoing court case concerning the matter which brings the issue into conflict with the provisions of the Standing Orders of the Senate that explicitly prohibits legislative actions on matters that are currently under judicial consideration.
The Senate’s decision also involved a further consultation with the legal department of the National Assembly to ensure that any resolutions or actions taken would not violate legal standards or judicial processes.
