Rahma Ahmed
By Ahmed Rahma
The Director-General of Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf, has urged the federal government and the electricity distribution companies (DisCos) to adopt a strategic approach to the nation’s electricity pricing.
The DG, who said this on Tuesday, explained that this would avoid pushback from the consumers.
Mr Yusuf stated that while the commercial arguments for a hike might be strong, its implications, given the social context, must be reckoned with.
He said the transition to the new pricing regime should be strategic and gradual to minimise shocks and the risk of “a pushback” by the consumers.
He also noted that there was a need for the importance of reckoning with the economic, social and political ramifications of such price reviews.
Speaking further, he said these contexts should have a moderating effect on price movement at this time, especially for a product of high social significance.
Mr Yusuf, however, reiterated the chamber’s support for a cost-reflective tariff for electricity.
“Context matters in policy conceptualisation and implementation, and we need to worry about social and economic contexts.
“These contexts should have a moderating effect on price movement at this time, especially for a product of high social significance.
“It is important to take these factors into account in order not to put the entire reform process at risk,” he said.
The management of the Nigerian Electricity Regulatory Commission (NERC) had denied the 50 per cent increase in electricity tariff which was widely reported.
Commenting, the head of Public Affairs of the commission, Mr Micheal Faloseyi, said no approval has been granted for 50 per cent hike in electricity tariff.
“The commission hereby states unequivocally that no approval has been granted for 50 per cent tariff increase in the tariff order for Electricity Distribution Companies (DISCOs), which took effect from Jan.1, 2021,” Mr Faloseyi said.
