Tariff: Power Minister Apologises Over Freezer Comment

The minister of power, Adebayo Adelabu, has apologised to Nigerians for saying that they keep freezers on for days due to low electricity tariff.

“Anything we have said that are considered offensive, we are sorry about that,” Adelabu said with slight remorse on Channels Television’s Politics Today on Thursday.

The minister had come under fire by many Nigerians in the last one week for his comment which was considered offensive.

Adelabu had told journalists in Abuja on April 4, 2024 that Nigerians lack the culture of electricity consumption management because of “cheap” power supply.

He had made the statement after the government announced tariff increase for Band A consumers. The minister’s comment generated outrage with some persons calling for his removal.

However, Adelabu, on Thursday, expressed regret over his comment, saying it “was never intended to insult the sensibilities of Nigerians in anyway”.

“It was an innocent advice with regards to energy consumption management which we believe will go a long way in reducing people’s energy bills. And that advice was directed at those that we believe that because of the recent increase in tariff will start enjoying 20 hours of power per day,” he said.

The Nigerian Electricity Regulatory Commission (NERC) had on April 3, 2024 raised electricity tariff for customers enjoying 20 hours power supply daily. Customers in this category are said to be under the Band A classification.

The increase will see the customers paying N225 kilowatt per hour from the current N66, a development that has been heavily criticised by many Nigerians, considering the immediacy of the tariff hike and the current hardship in the land.

The minister subsequently said the new electricity tariff hike would only affect only 1.5 million of the about 12 million consumers in the sector.

The minister also said the federal government is still paying subsidy on electricity despite the recent hike in tariff paid by Band A customers said to be about 1.5 million of the total 12 million consumers in the sector.

The minister said the government has about N1.8trn to pay in electricity subsidy for 2024.

Adelabu insisted that the Electricity Act, 2023 made provisions for the review of tariff twice a year.

Contrary to claim by human rights lawyer, Femi Falana, that the increase in tariff paid by Band A consumers was illegal, Adelabu said, “Review of tariff is actually legal once it is within the exclusive responsibility of the Nigerian Electricity Regulatory Commission (NERC). The Act actually provides for review twice in a year, every six months.”

On claims in some quarters that the Federal Government had removed subsidy on electricity in 2022, Adelabu cited rising dollar, soaring gas price, the cost of power plant, transmission and distribution infrastructure, amongst others in the last two years.

“If we have been paying the tariff at the same level in the last two years, it logically means that someone has been paying the burden of all these increases,” he stated.

“As it is today, looking at a total production, transmission and distribution cost, the Nigerian Government is bearing 67% percent of that cost before the increase in tariff for Band A customers. But when you look at generation cost, the Nigerian Government is paying 90% but in terms of total subsidy, it is about 67% of subsidy on the tariff.

“Last year, it was about N720bn which was not fully funded, we have about N305bn carried into this year. If we retain tariff at the current level, the Nigerian Government will be needing about N2.9trn to subsidise electricity but with the increase for Band A customers, we are going to have a reduction of about N1.1trn. So, we are looking at about N1.8trn in subsidy,” he further explained.