FG's planned electricity tariff hike may trigger unrest -  HURIWA 

Mon, Feb 3, 2025
By editor
4 MIN READ

Politics

THE Human Rights Writers Association of Nigeria (HURIWA) has strongly condemned the Federal Government’s plan to increase electricity tariffs, warning that such a move could provoke widespread public unrest given the already dire economic conditions facing millions of Nigerians.

The Federal Government recently hinted at an impending tariff hike as part of efforts to attract private investments into the power sector. According to the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, the government is working towards establishing a “cost-efficient but cost-reflective tariff” model. She made this known at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, while unveiling Nigeria’s $32 billion plan to expand electricity connections by 2030.

Reacting to this development, HURIWA described the proposed tariff hike as “toxic, unconstitutional, and a direct assault on the economic survival of Nigerian citizens.” The rights group noted that the government’s consistent implementation of pro-elite policies—such as the removal of fuel subsidies, increases in food prices, and devaluation of the naira—has already pushed many Nigerians to the brink of poverty.

“The Tinubu administration appears determined to push Nigerians into a state of economic despair,” HURIWA stated. “The proposed electricity tariff hike, coming on the heels of fuel price increases and food inflation, is a clear attempt to burden the masses further while protecting the interests of a privileged few. This could ignite widespread protests and civil disobedience if the government fails to reconsider.”

HURIWA emphasized that it is unacceptable to demand higher electricity payments from citizens when over 60 million Nigerians lack access to regular power supply. The group argued that rather than imposing additional financial burdens on struggling households, the government should focus on recovering the billions of dollars lost to corruption in the power sector.

“Since Nigeria’s return to democracy in 1999, the power sector has been riddled with corruption scandals. Under the administration of former President Olusegun Obasanjo, the government reportedly spent over $16 billion on power sector reforms with little to show for it. A former Minister of Power from that era faced prosecution by the Economic and Financial Crimes Commission (EFCC) for mismanagement and embezzlement of funds allocated for electricity projects.

“During the Goodluck Jonathan administration, the National Integrated Power Project (NIPP) faced allegations of misappropriation, with over $1.5 billion unaccounted for. Reports from the Nigerian Electricity Regulatory Commission (NERC) have consistently highlighted financial mismanagement within Distribution Companies (DisCos) and Generation Companies (GenCos).

“In more recent times, investigations have uncovered over N197 billion in contract fraud within the Rural Electrification Agency (REA) and other government bodies involved in power distribution. The EFCC has reported numerous cases where contractors were paid for projects that were either poorly executed or not executed at all.

“Additionally, the Auditor-General’s report revealed financial irregularities within the Nigerian Bulk Electricity Trading Company (NBET), including unauthorized payments and procurement breaches. Despite these revelations, accountability remains elusive, and many of those implicated continue to walk free,” HURIWA lamented

HURIWA called on the Federal Government to prioritize the recovery of stolen funds and the prosecution of individuals responsible for the mismanagement of the power sector.

“Before even considering a tariff hike, the government must address the endemic corruption in the sector. Billions of dollars have been siphoned off by officials and contractors, and yet it is ordinary Nigerians who are being asked to pay the price for this failure,” the group noted.

The rights organization warned that Nigeria is dangerously close to a tipping point, with the risk of a popular uprising growing by the day. It urged the government to learn from global examples where economic injustice has led to civil unrest.

“The government is courting disaster. Nigerians are already overwhelmed by high costs of living, unemployment, and insecurity. Adding an electricity tariff hike to this mix is like adding fuel to a smoldering fire,” HURIWA cautioned.

HURIWA urged President Bola Tinubu to immediately halt plans for the tariff hike and instead focus on comprehensive reforms to address corruption, inefficiency, and mismanagement in the power sector. It recommended that the government conduct a full audit of all power sector expenditures since 2015, recover misappropriated funds through aggressive anti-corruption campaigns, invest in modernizing power infrastructure to improve efficiency and reduce costs, and engage with civil society organizations and consumer groups to develop policies that prioritize the needs of ordinary Nigerians.

As the Federal Government pushes forward with its economic reforms, HURIWA reminded officials that the primary responsibility of any government is to protect the welfare and interests of its citizens.

“We urge the government to reconsider this oppressive policy. The voices of Nigerians must be heard, and their hardships acknowledged. Failure to do so may lead to consequences far beyond the control of any administration,” HURIWA concluded.

A.I

Feb.3, 2025

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