OrderPaperToday – Minister of Power, Works and Housing Babatunde Fashola has said government must hike electricity tariff for consumers to enjoy power supply in Nigeria.

Fashola spoke on Tuesday at the National Assembly when he defended the budget of his ministry before the senate.

Fashola said investors would pull out of the power sector if they could not get returns on their investments.

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He said that since the Senate had empowered the National Electricity Regulatory Commission (NERC) to determine tariff for electricity, the recent increment was not unlawful.

He said: “Electricity is a product, it is made from raw materials, some of the raw materials are gas, some of the raw materials are power plants they are also related.

“So, the issue of tariff is the single issue of price, when the raw materials of course will go up the price cannot stay the same.

“You may ask why can’t we have more power before the price goes up: I am also a consumer, but we see that investments in power are not where they should be.

“If the recovery price and the income and profit does not make economic sense to the investor, would you do that business if you are the one?

“So it is not what I want, it is what I think will solve the problem, everybody is owing everybody in the power equation and they are also owing banks.

“There are a lot of investors who want to pay a little more than the open market tariff, if we want them to come into the industry we have to allow the new tariff order.”

Fashola said that the tariff increase was necessary as the former administration was perhaps afraid to confront Nigerians with the real price of electricity hence the increment in tariff every two years.

Fashola however assured that the new tariff was a ten-year policy that would not be reviewed upwards or downwards except if prices of raw materials went remarkably high or low.

According to him, “tariff order also removes fixed charge, the consumers say they do not want fixed charge: nobody likes fixed charge because they want to pay for what they use.

“So it gives the consumer something and it gives the service provider something too so that we can see increments.

“Government has bought out the issue of generation of power so people will not go into generation of power if it is not a business from which they can make a recovery and some profit.

“The law passed by the National Assembly clearly gives NERC the responsibility and power to give a tariff that enables them to recover their investment and returns on investment.

“So nothing unlawful or illegal has happened, one thing we must however begin to embrace is conservation,” he said.

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24 COMMENTS

  1. APC IS THIS THE CHANGE WE BARGAINED FOR? NAIRA DEPRECIATION. ELECTRICITY TARIFF INCREASE. KEROSENE PRICE INCREASE. NA WAOOOOOOO

  2. Their efficiency in service delivery has to be put forward first for all to see the need in such step.
    If for two or three months, we don’t remember about petrol for our generators.
    We would have save cost to pay for an increase in cost of electricity supply with all pleasure.

    A situation where both are going pari pasu, nobody would see any need in increase of un-rendered services.
    If electricity supply is regular today.
    The numbers of plastic kegs at petrol station would drop significantly.
    The idea of #1k for the car #4k for genset at home ‘d saloon would STOP automatically.

  3. hike electricity and hike your change. when will you people think of the good and well being of the Nigerian citizens. servants turning masters. you enjoy free things which are paid by the common man you extort and embezzle to enrich yourselves. its becoming alarmingly worry some

  4. something we don’t see or enjoy u r talking of hiking it,that is pure madness..fashola u shld be ashamed,a lawyer fielding himslf as an engineer..

  5. Why won’t you Hike electricity tarif Fashola wen u had loot public fund enough for yourself and your generation yet unborn. For ever I hate APC.

  6. Why won’t you Hike electricity tarif Fashola wen u had loot public fund enough for yourself and your generation yet unborn. For ever I hate APC.

  7. Fashola ! We voted for CHANGE ! Change from poverty to prosperity !!! Are we still on course ? Or our orientation has changed ??

  8. FASHOLA YOU COMMENT OF HIKING ELECTRICITY TARIFF WITHOUT IMPROVING ON SUPPLY IS AN ANOMIE, UNACCEPTABLE, FIRST THEY SHOULD SHARE PREPAID METERS,MAKE SURE THAT EVERY HOUSE IS METERED AND ENSURED STAYED LIGHT BEFORE YOU CAN TALK OF HIKING TARIFF,ANYTHING SHOT OF THIS IS FROUD

  9. ELECTRICITY IS NO ONE OR SECOND MAJOR AREA DAT GOVT NEED 2 LOOK IN2,EVEN IF GOVT IS LOOKIN IN2 OTHER SECTOR LYK AGRICULTURE. EVERY GOOD ECONOMY IN D WORLD HAS 60-70% ELECTRICITY CONTRIBUTION. WEN U GO 2 MANY PART OF EUROPE,U WIL PAY DARELY 4 ELECTRICITY. THEN FASHOLA AS PERSON,HE’S A MAN OF VISION N MISSION. D ONLY AREA I CAN CRITICISE HIS DECISION IS,IT SUPPOSE 2B ”PAY AS U GO”

  10. the liars of those days make it dif for nigerians to like this increase but if u say with this increase we will enjoy light 24/7 we are waitg. But remember u shld protect ur gud name

  11. He jst want pple to hear his voice, hw many times hav we have dis promise, inshort no gud thin frm d ruling party

  12. It’s unfortunately that this government make money on expenses of poor nigeria . CBN have started removing 50 naira from every 1000 naira deposited and Fashola wants to increase nepa bill.

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