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FG denies, agrees 50% hike in electricity tariff

Following the approval for the hike in electricity tariff given by the Nigerian Electricity Regulatory Commission (NERC), as the increase which varies (from N2 to N4), based on different consumer classes, took effect from January 1, 2021, there had been counter reactions from the same government.

A few hours after the news of the tariff hike broke, the NERC issued a statement, denying a 50 per cent hike even as the agency blamed the N2 to N4 adjustment in tariff on inflation and movement in foreign exchange rates.

But in a swift reaction, the Trade Union Congress issued a stern warning, asking the Federal Government to revert to old electricity tariff or face the consequences of its action.

The NERC had announced the tariff hike in its December 2020 minor review of the Multi Year Tariff Order and Minimum Remittance Order obtained by our correspondent in Abuja on Tuesday. The tariff increase is taking effect just two months after the government through NERC implemented a hike in November 2020, which saw widespread opposition. The MYTO order containing the latest tariff hike, Order NERC/225/2020, was signed by the new Chairman of NERC, Sanusi Garba, and it supersedes the previous Order NERC/2028/2020.