40% tariff hike: Nigerians may pay N1000 to buy 10units of electricity by July 1

Nigerians are growing increasingly apprehensive three weeks into President Bola Ahmed Tinubu’s new administration, notably the intention to raise electricity tariffs by 40% in July.

The rapid pace of President Ahmed Bola Tinubu’s initiatives, notably the elimination of fuel subsidies, has sparked concerns that the administration may be aiming to eliminate subsidies in other areas, including power.

This recent development has created a surge of emotions, as more Nigerians, who are already dealing with the withdrawal of fuel subsidies, are now reacting to news of an energy tariff hike.

Users on Twitter have expressed their concerns about the long-term impact of the tariff rise on the economy and the majority’s livelihoods.

Ever since the announcement was made, the social media platform, Twitter has been buzzing with commentaries on the long-term impact the tariff hike will pose on the economy and the sustainability of living standards for the majority.

About the matter at hand, this is what some Nigerians had to say on Twitter.

A Twitter user, Mark Nathan highlighted the rollout of several policies without complementary efforts to ease the residual impact on the citizens.

• “Mrloanbreatheprices Ahmed Tinubu three weeks in office: – Subsidy removal with ZERO plan to cushion the ripple effect. – Student loans that the poor can’t access. – 7.5% VAT on fuel with ZERO subsidy. – 40% tariff hike in electricity that we rarely used. Welcome to a new dispensation”

Mr Ahmed Tinubu three weeks in office:

– Subsidy removal with ZERO plan to cushion the ripple effect.

– Student loan that the poor can’t access.

– 7.5% VAT on fuel with ZERO subsidy.

– 40% tariff hike in electricity that we rarely used.

Welcome to a new dispensation ✌️

— Mazi Nathan (@rukky_nate) June 19, 2023

Electricity tariff

Under GEJ,
1,000 naira = 64 units

Under Buhari,
1,000 naira = 16 units

Under BAT, (From July 1st),
1,000 naira = 10 units or less

— Mo-Mo (@Morris_Monye) June 19, 2023

Then there will be a lot of energy theft.

Electricity is like the air we breath and when denied but available it will be sought even through crooked means.

You cannot charge Nigerians international price when wages in Nigeria are not international

— Hamma (@HAHayatu) June 19, 2023

DID YOU KNOW?

At the moment, the federal government coughs out a monthly subsidy of N50 billion on electricity. However, with the initial removal of subsidy on petrol and motor spirit, and the free-floating of the naira, the sheer price standard of the Nigerian Electricity Regulatory Commission (NERC) 2022 Multi-Year Tariff Order (MYTO) has already been tampered with.

This is because, before this time, the tariff for electricity had always been determined by the official exchange rate. A breakdown shows that in 2015, the tariff stood at N198.97/$, which sold at N25 per megawatt bought.

By 2022 when it reached N441.78/$ the tariff was N60 per megawatt. All of this was factoring in inflation too. Now that inflation has peaked at 22.1% chances are high that the rates will be adjusted too.