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๐Ÿ‡ณ๐Ÿ‡ฌ Nigeria /Energy & Infrastructure

No justification for electricity tariff hike without better service - Falana

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A Nigerian lawyer opposes electricity tariff hikes without corresponding improvements in power supply, citing legal requirements.
  • He criticized past administrations for privatizing power companies and continuing to inject funds with little consumer benefit.
  • The lawyer stressed that tariff increases must be justified by better service under the Electricity Act.

Human rights lawyer Femi Falana has strongly opposed electricity tariff increases by distribution companies, insisting that any hike must be legally justified by measurable improvements in power supply. Speaking on Channels Television, Falana criticized both the Peoples Democratic Party (PDP) and All Progressives Congress (APC) administrations for their handling of the power sector.

Somebody sold 18 electricity companies, according to a former minister under the Jonathan administration, and Dr. Usman Shamsudeen, that we sold the electricity companies to our friends.

โ€” Femi FalanaCriticizing the privatization process of electricity companies.

Falana pointed out that despite the privatization of 18 electricity companies, the government continues to allocate trillions of naira to the sector, yet consumers see little benefit. He quoted a former minister who suggested the companies were sold to "our friends." He highlighted the ongoing hardship faced by Nigerians who are "paying more for services that are not rendered."

"Again, this time around, you will have to justify. Because under the law, under the Electricity Act, you can only increase your tariff if there is improvement in services," Falana declared. He emphasized that if the power supply situation worsens, there is no legal basis for a tariff increase.

Now, the government has been giving again a lot of trillions of naira to the electricity companies. At the end of the day, you hear of Band A, Band B, and the rest of them.

โ€” Femi FalanaHighlighting continued government spending on electricity companies post-privatization.

His remarks come amid widespread complaints about erratic power supply, frequent outages, and poor service quality, even after previous tariff adjustments. Nigeria's privatized power sector has long been plagued by issues such as insufficient generation capacity, high technical and commercial losses, and a heavy reliance on government bailouts. The service band system, like Band A which promises longer supply hours, has also faced criticism for failing to deliver consistent improvements for most consumers.

Again, this time around, you will have to justify. Because under the law, under the Electricity Act, you can only increase your tariff if there is improvement in services. So if the situation is getting worse, there can be no justification for an increase in tariffs.

โ€” Femi FalanaStating the legal requirement for improved service before tariff hikes.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.