The Convener of PowerUp Nigeria, Mr. Adetayo Adegbenle has called for the suspension of the planned tariff increase until consumers are fully metred.
Adegbenle, who gave the advice in an interview in Lagos, urged the Distribution Companies (Discos) to meet up to 70 percent metering gap within their network before contemplating tariff increase.
The DisCos are seeking the approval of the Nigeria Electricity Regulatory Commission before their planned upward review of tariff.
Adegbenle said all previous tariff reviews have never met its expectations despite all the promises on paper, made by the Discos and Nigerian Electricity Regulatory Commission (NERC).
“Therefore, all tariff reviews should be suspended until all DisCos meet up to 70 percent metering, and DisCos can increase collections by 50 percent of their present ability.
“They also need to meet up with a practical target of reducing their Aggregate Technical and Commercial Losses (ATC&C) by up to 60 percent. We must note that this is the first time the Multi-Year Tariff Order (MYTO) regulation is being followed by the Discos, by first applying for the tariff review.
He urged NERC to call up other conditions for tariff review, considering the present economic situation.
He said the recent removal of fuel subsidies and floating of the Naira has also impacted Nigerians.
On the federal government’s intention to commence importation of pre-paid, Adegbenle condemned the proposed impending displacement of local meter manufacturers.
According to him, its process was anti-local industry; it will not help our economy and would only help other nations build theirs at the expense of Nigerians, for a loan we will still have to pay.
“This FG’s intention is against the backward integration policy that we have been pursuing as a nation. Well, we will not call it “impending displacement” per se, but the move would not help local meter manufacturers.
“There is no way they will be able to compete with that bidding condition. They will have to come up with a bid security of $500,000, and a cash flow of over $5 million. We have not patronised them enough to expect that volume of transaction with them,” he advised.
He said one of the manufacturers was complaining of owing over $20 million to set up his factory, this manufacturer already even said he was ready to supply meters, all he needs is a payment guarantee from CBN.
On the alleged N37 billion investment project in free meter procurement and installation, the expert advised President Bola Tinubu to set up a committee to look into the allegation.
He said: “You can imagine we have N37 billion somewhere and we are still taking a World Bank loan.
