The Federal Government of Nigeria proposes to underwrite N544.8 billion Electricity Tariffs Shortfall in 2020 almost at same time when the new electricity tariff will kick in.
The Nigerian Electricity Regulatory Commission (NERC) announced a review in the 2015 multi-year tariff order and minimum remittance order. This prompted the electricity distribution companies (DisCo) on a new tariff which will begin implementation from April.
The immediate increase will not occur until April 1 and the end of 2021 will mark its full reflection.
Sunday Oduntan, Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), the umbrella body of the Distribution Companies, described the new development “as a slight increment”. He further added that the Tariffs shall remain as they are presently since 2015 until April 01, 2020 when the slight increment will be effective. This is to cater for shortfalls, he said.
Oduntan further allayed the fears of the electricity users and consumers saying “We sincerely hope that this statement substantially clarifies the accurate position and allays any fears and concerns, our esteemed customers may have”.