Electricity Tariff Hike: NBA Threatens Legal Action Against DisCos

Electricity Tariff Hike: NBA Threatens Legal Action Against DisCos

The Nigerian Bar Association (NBA), Ikeja Branch, has issued a stern ultimatum to the Federal Government and Electricity Distribution Companies (DisCos), demanding a reversal to the previous electricity tariff within seven days or face legal consequences.

Chairman of the branch, Seyi Olawunmi, conveyed this ultimatum during a press conference held on Tuesday in Lagos.

Olawunmi criticized the nearly 300% increase in electricity tariffs, branding it as not only unreasonable but also insensitive to the plight of the citizens.

He argued that the National Electric Regulation Commission’s (NERC) directive on the tariff hike did not align with the current economic realities faced by the average Nigerian.

If the Federal Government and relevant stakeholders fail to reverse the tariff hike within the stipulated timeframe, Olawunmi stated that the NBA would pursue legal recourse in court.

The chairman highlighted NERC’s issuance of a new Multi-Year Tariff Order (MYTO 2024) in December 2023, which introduced a purported cost-reflective tariff for various Discos.

Olawunmi pointed out that a significant portion of the electricity tariff was previously absorbed by the Federal Government through a subsidy arrangement, which has now been removed, resulting in over a 300% increase in the tariff for end-users.

He described this sudden and significant hike as exploitative and not reflective of the economic hardships faced by the masses.

Demanding an immediate halt to the implementation of the N225 per kWh tariff for band A customers, Olawunmi emphasized the need to eliminate the classification system (band A, B, C, etc.) and ensure equitable access to electricity for all consumers.

If the government fails to address the tariff hike within seven days, Olawunmi warned that the NBA would pursue legal remedies in the court of law to protect the rights and interests of the Nigerian people.

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