FG Announces The Reduction In The Percentage Increase In Electricity Tariff

In a meeting held at the Banquet Hall of the Presidential Villa, Abuja, between the Federal Government and the Organised Labour, the Government reduced the percentage increase in electricity tariff as a result of the transition to the Service-Based Tariff by between 10 to 31 percent, depending on the band a consumer belongs.

According to reports, it was also agreed that the resolutions adopted would be implemented within the week, by Sunday, 18th October, 2020.

The resolution was signed by the President of NLC, Comrade Ayuba Wabba and the President of Trade Union Congress (TUC), Comrade Quadri Olaleye on behalf of Organized Labour; while it was signed by the Minister of Labour and Employment, Chris Ngige and the Secretary to the Government of the Federation (SGF), on behalf of the government.

Consumers on Band A will be reduced by 10 percent; those on B and B will be reduced by 10.5 percent, while the consumers on B and C, will enjoy a reduction of 31 percent reduction.

“Leveraging on the VAT from the NESI, the increases experienced by customers due to the transition to the Service-Based Tariff will be reduced as follows: Band A – 10 per cent reduction, Band B – 10.5 per cent reduction and Band C – 31 per cent reduction.

The resolutions also read: “Following extensive analyses, it was realised that VAT proceeds from the NESI could be used to secure varying levels of relief in customer tariffs across bands A, B and C, ensuring that all customers receive some form of relief during this difficult time.”

“The immediate relief would be provided to citizens for a two to three month period (not later than 31 December 2020), being the timeline for the conclusion of an extended scope of work for the Technical Committee.”

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“This programme will distribute 6 million meters to Nigerians free of charge. The Central Bank of Nigeria (CBN) having approved the funding for this programme, the meters will begin being distributed to consumers immediately using stockpiles in-country and local assemblers. The cost of meters shall be recovered from the DISCOs.

“Local Procurement of Meters for the NMMP: The six million meters to be procured for the NMMP will only be through local meter manufacturers and assemblers. This will create jobs and a new meter manufacturing sub-sector in the country.”

“In implementing payment discipline measures for the DISCOs, the Government will ensure that the salary for Electricity Workers shall be protected in the revised payment waterfall structure for the NESI. “

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