HIGH TARIFF MAKES ELECTRICITY UNAFFORDABLE WHILE POWER COMPANIES MAKE HUGE PROFITS

HIGH TARIFF MAKES ELECTRICITY UNAFFORDABLE FOR MOST NIGERIANS AND PUBLIC INSTITUTIONS AS POWER COMPANIES MAKE HUGE PROFITS

• For Return of Power Sector to Public Ownership. This Time Under Democratic Control of Consumers and Workers

It is clear that the very essence of privatising the power sector is to make huge profit for the private power companies out of providing an essential need of everyday life and not to grow and develop the sector. Since November 2013 when the power sector was handed to the power companies, tariff has been increased eight times, making it the only preoccupation of the private companies, the government and the regulatory body (Nigerian Electricity Regulatory Commission).

By Chinedu Bosah

Just like the previous governments, the Bola Tinubu government has consolidated the attacks on the right of workers and poor Nigerians to affordable and uninterrupted electricity. The latest increase in electricity tariff was by a whopping 230% from N68 Kwh to N227 KWh, and the new method in actualizing this rip-off was to segregate consumers along different electricity locations and electricity allocations known as Band A, B, C, D and E since April 2024. Band A has a minimum of 20 hours daily but these minimum hours daily supply is not guaranteed for different reasons bordering on weak facilities and infrastructure while consumers are forced to pay an outrageous bill. According to Punch Newspaper of October 7, 2024, the Distribution Companies (DISCOs) raked in N887 billion in the first 7 months of 2024 following tariff increase for Band A customers, which is about 47% increase compared to the first 7 months of 2023, which was N604.15 billion.

The government has insisted that electricity tariff will be increased for all other bands (Bands B, C, D and E) starting this year. The government has abandoned its usual claim of wanting to improve generating capacity, transmission network and distribution capability amidst system collapse. The objective is to supply electricity only to where it guarantees super profits even if it is by ripping off working class and middle-class people. On a minimum wage of N70,000 or low income, many poor families on Band A will be forced to pay more than N20,000 on electricity alone despite relying on few and low-energy electricity gadgets. The electricity rank and file workers cannot afford the Band A tariff but the top management staff and top political office holders can afford it because they earn jumbo salaries and allowances. For instances, the Managing Director of Egbin Power Plc earns N30 million monthly almost the same as Nigerian Senator, Minister etc.

This vicious electricity tariff hike has made electricity unaffordable to most consumers including public institutions that render essential services. For instance, the College of Medicine of the University of Lagos and the Lagos State University Teaching Hospital (LUTH) were hammered a bill of about N280 million for May of 2024 by Eko Electricity Distribution Company (EKEDC) compared to less than N100 million they were usually billed before both institutions were put on Band A tariff (N227 KWh) in April 2024. Due to inability to pay the huge electricity bill, the two health institutions were disconnected for 10 days by EKEDC in July 2024 disrupting health care services and learning, forcing the medical students to embark on protest. In a Premium Times report of July 10, 2024, the Chief Medical Director of LUTH, Prof Wasiu Adeyemo stated that “no public institution offering social services such as health and education can afford such outrageous charges.”

In the same vein, the University College Hospital (UCH), Ibadan was disconnected for about 3 and half months (November 2024 – Mid February 2025) by the Ibadan Electricity Distribution Company (IBEDC) over debt of N495 million accumulated as at December 2024 due to astronomical hike in electricity tariff that provoked students of the University of Ibadan to protest.

According to Guardian Report of February 14, 2025: “Due to the migration to Band A, Ahmadu Bello University Teaching Hospital (ABUTH) pays over N70 million monthly; Aminu Kano Teaching Hospital pays over N100 million per month; Abubakar Tafawa Balewa University Teaching Hospital, Bauchi (ATBUTH) pays about N50 million monthly; Jos University Teaching Hospital (JUTH) coughs out about N30 million, and University of Nigeria Teaching Hospital (UNTH) pays about N50 million monthly for electricity.”

The consequence of astronomical rise in electricity bills is that hospital services and healthcare are disrupted and many could not afford the high hospital charge, leading to avoidable deaths. In the same Guardian Report, one Ezinne Nwandu died after the family withdrew her from LUTH following the disconnection of electricity, disruption of vital services and growing medical bills. The disruption in medical and educational services in the country is never a concern for the capitalist ruling elite, they have looted so much to pay for expensive medical tourism abroad for themselves and their families. So, they have consciously neglected public hospitals and schools to a state of rot and decay. Hence, the capitalist ruling elite don’t care a hoot if Nigerians die in droves or remain uneducated. Former President Muhammadu Buhari regularly visited England to get quality healthcare at the expense of Nigerian public funds. Similarly, President Tinubu is getting the same medical treatment in France at public expense.

The other areas of exploitation include the power Distribution companies making it a past-time to overbill consumers who do not have prepaid meters. Some houses not metered get as much as N700,000 or more monthly bills and some of them have been disconnected from national grid. Prepaid meters used for the purpose of measuring consumption that is supposed to be issued free of charge by the Distribution Companies are being sold at expensive rates to many and this unfair exploitation was endorsed by the federal government who created a private scheme (Meter Asset Providers) for the purpose of creating new profitable ventures for another sets of profiteers.

This high electricity tariff and other extortionist electricity policies have forced some working class and poor communities in Lagos for instance (Aboru, Aguda Surulere, Coker, Ajegunle etc) to publicly embark on protest to demonstrate their rejection and opposition. There is the need for these pockets of resistance in Lagos and across the country to come together for a series of mass unified action to win demand for affordable and regular electricity. There is also the need for the National Union of Electricity Employees (NUEE), Nigeria Labour Congress (NLC), Trade Union Congress (TUC) to provide leadership and platform to the growing resistance against electricity exploitation and poor supply.

The reality is that the crisis over electricity sums up the crisis facing the whole country. The section of the capitalists owning the electricity industry have no real interest in substantially developing the country, their focus is on their own profit. Not only do they exploit the vast majority of Nigerians and the public sector they also do not care about other economic sectors which need electricity.

This obvious failure of privatization and the private electricity companies which exist only for super profit at the expense of the needs of the public and the economy as a whole give added strength to our call on working people and trade unions to demand and fight for the power sector to be brought back under public ownership in addition to massive public investment. However, to avert the debacle of old NEPA and PHCN, the power sector has to be subject to democratic control of workers and consumers in order to ensure judicious use of public funds and other resources at its disposal such that regular supply is provided and the cost of electricity is driven down and made affordable to consumers.