Nigerian electricity distributors are sounding the alarm after the Enugu Electricity Regulatory Commission (EERC) slashed Band A tariffs from N209 to N160 per kWh, triggering a wave of customer resistance across the country.
DisCos Under Fire as Customers Refuse to Pay Bills
In a statement by the Association of Nigerian Electricity Distributors (ANED), CEO Sunday Oduntan revealed that consumers in other states are now refusing to pay bills, demanding similar reductions. The move has thrown the power sector into disarray, with DisCos warning of severe financial instability if tariffs are arbitrarily adjusted without market-wide coordination.
A Subsidy Time Bomb?
The DisCos argue that the EERC’s decision was made without proper consultation with the Nigerian Electricity Regulatory Commission (NERC) or consideration of cost-recovery mechanisms. They warn that such cuts—unless backed by fully funded subsidies—will cripple remittances to generation companies (GenCos) and worsen Nigeria’s N5 trillion electricity debt crisis.
Federal vs State Power Battle
ANED cited Power Minister Bayo Adelabu’s stance: any state lowering tariffs must shoulder the subsidy burden. However, with most states already cash-strapped, the group doubts their ability to sustain such interventions. The association stressed that while lower tariffs are desirable, “unfunded subsidies will deepen liquidity shortages” across the power value chain.
Will NERC Intervene?
As pressure mounts, ANED has called for urgent federal guidance to align state and national power policies. The looming question: Will other states follow Enugu’s lead, or will NERC enforce a unified tariff structure to prevent market collapse?
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