The revelation that about N2.9 trillion has been expended as subsidies on electricity is attracting concerns from lawmakers and Civil Society Organisations (CSOs).

A former senate leader, Yahaya Abdullahi (Kebbi North), who expressed concern about the level of deterioration in the power sector, noted that the amount of resources spent on power seems to be wasted.

This emerged just as the stalling of last Thursday’s debate on electricity tariff hike at the Senate is attracting condemnation.

The Senator Enyinnaya Abaribe-led Senate Committee on Power, which investigated the recent hike in electricity tariff, revealed that official figures made available to the committee in the course of its investigative hearing indicated that although the Federal Government’s subsidy obligation reduced from N528 billion in 2019 to N144 billion in 2022, it rose again to N2.9 trillion in 2024 due to foreign exchange and inflation while legacy debts of gas supply companies stood at $1.3 billion.

However, critics, including serving members of the National Assembly and CSOs, said the expenditure has not had any impact on the quality of electricity supply in the country.

In separate interviews with stakeholders and lawmakers, the Senate was also criticised for abruptly halting the debate on electricity tariff hike last Thursday.

The stakeholders believe that the interpretation of a provision of the Senate Rule regarding matters pending in court to abort the debate on electricity tariff hike has further eroded the confidence of the people in the National Assembly.

They also maintained that the action was a travesty of the representational role of parliament.

The Senate Committee on Power had recommended among others that the National Electricity Regulatory Commission (NERC) should suspend the ongoing implementation of MYTO 2024, which approved over 200 per cent upward review of the previous tariffs from N68/kWh to N225/kWh to allow for robust consultation with customers on the various bands on the cost of service instead of heavy reliance on feeder location and duration of service, which are difficult to determine and monitor.

The report, whichh was presented to the Senate by Abaribe, also recommended that “NERC should ensure full compliance with the mandatory requirement of stakeholder consultation under Section 48 of the Electricity Act, 2023 regarding future regulatory decisions to avoid a repeat of the confusion and public outcry that trailed the recent tariff increase.”

Other recommendations of the committee are “that the Ministry of Power and NERC should in the meantime adopt measures to address the problem of power scarcity holistically rather than its preoccupation with price manipulation, which has proven to be counterproductive.

DisCos

“That NERC should hold the DISCOs accountable on Key Performance Indicators (KPIs) including failure to deliver on CAPEX and OPEX allocations, customer metering obligation under the Electricity Act, 2023; essential customer service obligations including customer sensitisation, implementation of energy credits for customers who invested in transformers metres and other assets on the DisCos networks.

“That rate designs should only be cost-reflective if proper account is taken of the relevant macroeconomic environment that determines the affordability of electricity to the different segments of the market.”

The committee also recommended “that the Federal Government metering intervention should be encouraged and intensified to address current metering gap of 6.3 million and this must be pursued by the FGN without prejudice to the statutory obligation of DisCos to metre their customers as provided under Section 68(1)(b) of the Electricity Act, 2023. In this regard, Mr. President should be commended for the introduction of the Presidential Metering Initiative.

“That the Federal Ministry of Power should be advised to intensify efforts towards honouring the subsisting contract with Ziklagsis Networks Ltd (ZNL) for the manufacture, supply, installation, management, and maintenance of Pre-Paid Metres (PPMs) in Nigeria including the recent Tripartite Metering Project Consortium Agreement between ZNL and De-Haryor Global Services Limited and the Nigerian Army dated September 7, 2023, which was signed by ZNL for the metering of army barracks and other military facilities or in the alternative refund the initial funding to the Federal Government.

“That vigorous implementation of power decentralisation provided for under the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) and the Electricity Act, 2023 to relieve the Federal Government of the pressure to electrify every nook and cranny of this country should be encouraged.”

However, upon noticing that the majority of senators were arguing in favour of the committee’s report, the Senate leadership swiftly announced its decision to abandon the debate.

Section 53(5) of the Senate Standing Rule specifically states that “Reference shall not be made to any matter on which a judicial decision is pending, in such a way as might in the opinion of the President of the Senate prejudice the interest of parties thereto.”

A Federal High Court In Kano had on May 3, 2024, issued an order restraining the NERC and the Kano Electricity Distribution Company (KEDCO) from implementing the new electricity tariff for Band A consumers.

Ruling on an ex parte motion, the presiding judge, Abdullahi Liman, made an interim order restraining NERC and KEDCO from going ahead with the impending tariff pending the hearing and determination of the motion on notice.

The order also restrained the defendant from intimidating and threatening to disconnect the applicants’ electricity supply for non-acceptance of the new increased tariff.

Curiously, instead of adopting the report of its Committee on Power, which in compliance with the court order, recommended the suspension of the electricity tariff hike, the Senate chose to abort the debate and throw away the report.

Lawmakers had during their preliminary remarks on the report of the committee expressed disappointment that the NERC unilaterally increased the electricity tariff hike amidst the increasing cost of living in the country.

Chief Whip of the Senate, Ali Ndume, said the plan by NERC was discriminatory and unconstitutional.

“I am surprised with the sudden hike in electricity tariff, which is against the constitution. When I heard about this, I checked the constitution and what they did was discrimination, which is against the constitution.

“If you are living among the masses, you are getting power from Band A and others are not; it’s discrimination,” Ndume said, adding that he was not happy that President Bola Ahmed Tinubu was buying into such a policy.

Senator Isah Jibrin (Kogi East) said the government must intervene in some sectors of the economy, particularly the power sector, before increasing tariffs in the sector.

“Most of the companies in Nigeria today cannot operate because of power. Government should invest by way of subsidies,” he said .

The Senate Minority Leader, Abba Moro, said what was going on in Nigeria was very sad. He revealed that Nigerians provide transformers for their communities and pay the electricity companies to install them, after which the electricity companies take ownership of the transformers.

Senator Adamu Aliero (Kebbi Central) said the increment in electricity tariff was done without consultation, urging the Senate to swing into action by adopting the committee’s report.

Senator Jimoh Ibrahim (Ondo South), however, said as beautiful as the matter was, the Senate should give respect to the judiciary, an affirmation of an earlier point of order raised by Senator Titus Zam (Benue North East), to the effect that a Kano High Court is already entertaining the matter of the electricity hike.

Ibrahim advised that since the case is in court, the Senate should not be the judge, urging the upper legislative chamber to step down the report.

Ruling on the matter, the Deputy President of the Senate, Barau Jibrin, who presided over the plenary, said he knew about the order of the court, adding that he is constrained.

“There is a need for us to have restraint,” Barau said, adding that having listened to the comments of Zam, who is the Chairman of Rules and Business, there was a need to step down debate on the report.

Reviewing the development, the Human Rights Writers’ Association (HURIWA) submitted that by stalling the debate and throwing away the report, the Senate has abandoned the people whose interests it was put in place to defend.

HURIWA asserted that Nigerians have the right to be properly defended by the Senate particularly when decisions that have adverse effects on their economic and social lives have been taken by the government.

It expressed disgust that the Senate, being the highest legislative organ of the government in the country, could abandon the people on the most crucial issue of survival.

HURIWA’s National Coordinator, Emmanuel Onwubiko, said: “The National Assembly and especially the Senate that is now headed by the controversial Senator Godswill Akpabio, has demonstrated beyond the shadows of doubts, that it is a Senate that has willingly betrayed the will of the people of Nigeria and has decided to become the appendage of the executive arm of government.

“The Senate under the current dispensation is haunted and hunted by deeper credibility deficits largely due to the imposition of the leadership by President Bola Ahmed Tinubu just before the National Assembly was inaugurated in June of last year.”

According to Onwubiko, “The Senate simply stamps and approves whatever communications they get from the Office of the President and goes to the Office of the President on a regular basis just to show their loyalty to the president and to take instructions on what to do and what not to do, which inevitably shreds into pieces the constitutional provisions of separation of powers as stated out in Sections 4, 5 and 6 of the Constitution and other relevant provisions of the Constitution that empowers the National Assembly to provide oversight supervision on Federal Government agencies and to be the go-between in matters affecting the people of Nigeria, especially from such draconian policies like high taxation and extremely high tariffs on electricity and even telecommunication. What is even more scandalous is for the Senate to rubbish findings of their committee and the lawful order of the court of competent authority. This is just like a coup d’ tat against constitutional democracy by the Godswill Akpabio-led Senate.”

Onwubiko added: “It is a tragedy of monumental proportions that we now have a Senate that is an agent of the executive arm of government against the interests of the people of Nigeria who are the rightful owners of the Sovereignty of Nigeria from whom government officials derive the legitimacy to exercise authority. If as it were that Section 14 of the Constitution recognises Nigerian masses as the owners of the sovereignty and democracy is the government of the people, for the people and by the people, it is, therefore, the constitutional duty of the representatives of the people of Nigeria (legislative houses) to always organise public hearings on all major policies that have adverse economic implications on the wellbeing and welfare of the citizens, so the legislative houses get the correct feedbacks of the people of Nigeria.

The Constitution states clearly that the primary duty of government is the protection of life and property of the citizens and to ensure the well-being and welfare of all citizens of Nigeria (section 15 (5) of the Nigerian Constitution of 1999 as amended).”

“This is a very sad development, and it is absolutely intolerable and reprehensible. We call on the Senate to rescind their anti-people decisions and we urge Nigerians to stand in defence of their constitutional rights and to organise peaceful demonstrations against the Senate of the Federal Republic of Nigeria for undermining the democratic and constitutional rights of the people of Nigeria. Nigerians must become active citizens and speak out loud and clear in denunciation of all anti-people policies and decisions by the three arms of government.”

The minority caucus of the House of Representatives had called on the Federal Government to prevail on the NERC to cancel the recent increment in electricity tariff across the country.

In a statement, Minority Leader of the House, Kingsley Chinda, described the hike as “inhuman and evil”.

The statement read In part: “We urge Mr. President, Bola Tinubu, to prevail on the electricity regulator, NERC, to rescind this decision and prioritise the welfare of the people.

“Transparent dialogue and inclusive decision-making processes are imperative to address the root causes of the energy sector’s inefficiencies and ensure sustainable solutions that benefit all stakeholders and not consistent and persistent increase in tariff.

“We call for increased accountability and transparency in the management of resources within the electricity sector. Citizens have the right to demand efficient service delivery and fair pricing mechanisms that align with their economic realities.”

The caucus also noted that, “the hike which is over 200 per cent above the rate of inflation, utterly disregards the plight of ordinary citizens who are grappling with the adverse effects of the removal of oil subsidy, galloping inflation, unemployment and inadequate access to basic amenities.”

The statement further read: “We note that in the immediate aftermath of the announcement of the tariff hike, NERC claimed that the hike affects only 12 per cent of electricity consumers who enjoy a minimum of 20 hours of electricity a day. The truth has become stark that this is a stark lie.

“The hike, from data put out by the DisCos, affects all electricity consumers. This habitual resort to deceit and outright lies clearly puts the government in a bad light and erodes the trust and confidence of the populace in the government.” (The Guardian)

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