The Senate yesterday asked the federal government of Nigeria to stop the idea of increasing electricity tariff it was
proposing saying there no justification for its power supply and its proposed tariff increase.
Explaining further on the developments at the plenary of
the red chamber, the president of the Senate, Ahmed Lawan lamented the terribly
poor electricity supply in the country despite the privatization of the sector,
and as justification, the lawmakers sought an immediate reversal of the power
sector privatization carried out by the last administration for “failure to
The Senate also urged the Federal
Government to suspend the planned increase in electricity tariff scheduled to
take effect from July 1, 2020, so as not to escalate the hardship Nigerians are
currently suffering due to the COVID-19 pandemic.
Adopting a motion sponsored by the
Chairman of the Senate Committee on Power, Gabriel Suswam, the upper chamber
declared that if the privatization in the power sector was not reversed,
Nigeria might stop having electricity in the next 10 years.
Lawan, who presided over yesterday’s
plenary session said: “We gave power to them (power generation and distribution
companies) and they still come to the public to ask for funds. I think it’s
time for Nigeria to consider reversing the privatisation of the power sector or
they should just cancel the entire privatisation process completely. If we
leave it, we may not have power for another ten years.
“We expected efficiency and something
better. The distribution companies have no capacity to supply us power. We
shouldn’t continue to give them money. They’re private businesses. We need to
review this whole thing. Something is wrong.”
The Senate also mandated its committee
on power to investigate all Federal Government’s interventions in the power
sector since the privatization to date with a view to ascertaining the adequacy
of such interventions and their desired impact, and to report back within four
The committee was charged to
investigate all market participants in the power value chain and ascertain the
level of corporate governance compliance in the Nigerian Electricity Supply
Industry (NESI) and to report back within four weeks.
“We request the Federal Government to
consider additional tariff support to cushion the effect of rate shock over a
fixed period to allow the time required for the Transmission Company of Nigeria
(TCN) and the distribution companies to access funds to implement performance
improvement investments that will benefit customers especially during the
The lawmakers commended the Federal
Government “for the proactive initiative to establish the N1.7trillion COVID-19
Crisis Intervention Fund to cater for issues that are critical to the effective
management of the pandemic and to stimulate a gradual return to normal
socio-economic activities in the country.”
They urged the Federal Government
through the Federal Ministry of Finance to include the power sector in the
disbursement of the proposed N500billion COVlD-19 Crisis Intervention Fund in
order to ameliorate the financial hazards and operational challenges such as
the enumeration of metering of actual consumers and other recent problems
caused by the pandemic.