- Consumers reject increase in tariff as job losses loom
Some civil society groups, hotel and tourism companies, yesterday, in Abuja, rejected the recent increase in electricity, saying there was no justification for the increase.
They raised concerns over the implications of the actions as hoteliers and tourist companies feared closure of many hotels and businesses.The stakeholders stated this at a joint press conference by Network of Electricity Consumers Advocacy of Nigeria (NECAN), Nigerian Hotels Association (NHA), Federation of Tourism Associations of Nigeria (FTAN), Hotels Owners Forum Abuja (HOFA).
In the face of dwindling revenue, the Federal Government had backed out of subsidising consumption of electricity, therefore, making the cost to go up by over 100 per cent.
Stating that they were being billed even when business operations were halted due to the Coronavirus pandemic, the operators said they were unable to cope with the new tariff in the face of the prevailing situation.
Speaking at the conference, Presidents of FTAN, Rabo Salem; NHA, Eze Anyanwu; HOFA, Dr. Ezeudeh; Ekete Obanga, and Power Up’s Adetoya Agbemle, accused the Federal Government of insensitivity to the plight of Nigerians.
The group asked government to reverse the tariff hike in the face of the COVID-19 challenges, noting that the increases won’t solve the problem in the sector, as reducing losses being experienced by distribution companies would have increased revenue.
With over 65 per cent in Aggregate Technical, Commercial and Collection (ATC&C) losses, the stakeholders said a 50 per cent reduction in the losses would have increased liquidity in the power sector.
They also lambasted the Nigerian Electricity Regulatory Commission (NERC), for going ahead with the increase despite weak metering policy, noting that the current tariff structure automatically discriminates against the poor, insisting that the development would lead to rural-urban migration.
The NGFCP, he indicated will however change the situation when implemented.
The federal government recently said it would not abandon its plan to concession up to 178 identified flare gas fields through its Nigerian Gas Flare Commercialisation Program (NGFCP) which it initiated in 2018.
Derefaka, who disclosed this, had said the country had been working on the modalities to achieve this, adding that the process of concluding the first phase of the NGFCP was ongoing with the bid rounds.
According to the government, the NGFCP was designed as its strategy to eliminate gas flares from oil fields in the country. It noted that with potentially enormous multiplier and development outcomes for Nigeria, the NGFCP will support technically and commercially sustainable gas utilisation projects developed by competent third-party investors.
