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RDI critiques government's tariff plans, warns of increased energy inaccessibility

POSTED ON March 6, 2025 •   Breaking News      BY Abiodun Saheed Omodara
Power station

ABUJA, NIgeria (NAN)- The civil society organization (CSO), Renevlyn Development Initiative (RDI), has raised concerns that the transfer of lower-band electricity users to Band A could result in significant energy poverty across Nigeria.

The executive director of RDI, Philip Jakpor, expressed this concern in a statement released on Wednesday in Abuja.

The Minister of Power, Adebayo Adelabu, revealed on February 27 plans to standardize electricity tariffs for customers in Bands A, B, and C.

According to Adelabu, this initiative is intended to enhance the efficiency of the power sector, ensure reliability, and attract investments to bolster the industry.

He also noted that tariff standardization would unlock the full potential of the sector and facilitate further advancements in power generation and distribution.

Jakpor cautioned that the proposed migration could exacerbate Nigeria’s energy crisis, placing additional strain on low-income individuals who have already been adversely affected by the failed power sector privatization of 2013.

“RDI believes that this decision will lead to an increase in the number of Nigerians experiencing energy poverty, with dire consequences for businesses, healthcare, and national progress.

It is alarming that while the World Bank identifies Nigeria as having the most significant electricity access deficiency, the government is pushing more citizens into darkness,” he stated.

Jakpor emphasized that RDI endorses the Nigeria Labour Congress’s stance that the issues within the power sector symbolize systemic injustice and economic oppression of the average Nigerian.

“How can one justify a privatization strategy that has resulted in escalating costs, frequent outages, and recurrent failures of the national grid?” he queried. 

He pointed out the significant disparity in electricity access between urban and rural regions, citing the Association of Small Business Owners of Nigeria, which reported that 25 percent of manufacturing companies have ceased operations due to challenges in the power sector.

Jakpor criticized the electricity band framework, claiming it has fostered an unnecessary division based on class.

He argued that this system favors the wealthy who can cope with increasing costs while neglecting poorer individuals who are already facing difficulties.

He advocated for a reversal of power sector privatization and the implementation of a diversified strategy that promotes investment in renewable energy.

Jakpor argued that this approach would support the national grid through a public-public partnership model that relies on effective public sector solutions.

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