The Nigeria Electricity Regulation Commission (NERC) announced a new 50% increase in electricity tariffs.
The new tariff scheme shall enter into force on 1 January and shall be complied with by the customers of the 11 electricity distribution companies.
The new tariff is included in the revised Multi-Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engr. Sanusi Garba dated December 30, 2020.
According to the NERC, the inflation rate of 14.9% increased in November 2020, the foreign exchange rate of N379.4/$1 as of December 29, 2020, the generation capacity available, the US inflation rate of 1.22% and the capital expenditure (CAPEX) of power companies resulted in a new tariff.
It would be recalled that the last tariff hike by the government almost led to the shutdown of the country by the Nigerian Labour Congress and Trade Union Congress until a parley between the unions and a government resolved the impasse with some concessions on both sides.
The Committee headed by the Minister of State for Labour and Employment, Festus Keyamo promised among other things distribution of prepaid meters and others.