Editorial
On That Hike In Electricity Tariff
As part of steps being taken to reform the nation’s ailing power sector, the Federal Government recently announced an upward review of electricity tariff in the country from N8.50 to N10.00 per kilowatt hour with effect from last Friday.
Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, who made the announcement, said it is in accordance with the last schedule of the 2008/2013 regime of the Multi-Year Tariff Order (MYTO), which was introduced to ensure that electricity prices are predictable in the country, and to make the industry more attractive to private investors who have expressed concern that electricity tariff in Nigeria is among the lowest in the world.
According to reports, the NERC announcement was the outcome of a meeting, early last month, between the electricity regulatory body and chief executives of the 11 power distribution companies (DISCOs) in the country.
Apart from a review of the MYTO pricing regime, the meeting was also said to have deliberated on the modalities for the administration of the N177 billion earmarked as subsidy under the Power Consumer Assistance Fund (PCAF) of which N43.9 billion has already been released by the Federal Government for onward distribution to beneficiaries.
Any keen industry observer would readily discover that the latest tariff hike is indeed a deviation from the electricity commission’s earlier assurances that it will not increase price until there is a marked improvement in power supply.
At present, the nation’s total power output is about 3,100 megawatts, having recently fallen from 3,700 megawatts due to a reduction in generation from the electricity plants of Power Holding Company of Nigeria (PHCN).
In fact, PHCN blames the current nationwide load-shedding on the ongoing maintenance work at Utorogun Gas Plant which has resulted to a shortfall in gas supply by the Nigerian Gas Company (NGC) to the thermal power stations at Egbin, Geregu and Olorunsogo.
Again, the power company claims that its inability to remedy the shortfall in thermal electricity supply through hydro generation has been severely hampered by the sharp drop in water level at some of the nation’s dams.
In view of the above circumstances, The Tide wishes to state that now is hardly the appropriate time for NERC to embark on a tariff hike, however marginal such may appear.
We say so in the belief that Nigerians have already had it up to their neck with regard to the plethora of flimsy excuses for which the mammoth electricity monopoly called PHCN is now known.
Electricity consumers may be willing to accommodate a marginal increase in tariff if only such is coming with a corresponding improvement in service delivery. This would have been more so if the system had ensured a conclusive distribution of prepaid meters to customers to ensure that they pay for what they actually consume rather than the current method of arbitrary billing by PHCN.
It is very disheartening to realise that Nigeria is still talking of how to attract investors in the power industry after three tariff increases within a decade. This, indeed, is shameful because it is happening at a time when Ghana, a fellow West African country, has just celebrated 10 years of uninterrupted power supply!
Even more disturbing is the fact that many multinational firms that were once operating in the country have since relocated to such other African countries where there is steady supply of electricity. What this means is that the employment chances, tax revenues, product and service availability, and host-community project development opportunities have also been lost.
We also fear that Nigeria stands to lose even more manufacturing outfits if the latest hike is not quickly followed by an improved power supply arrangement. This is because of the deregulation processes being undertaken simultaneously in the petroleum and power sectors.
For the manufacturers, the epileptic power supply means that they have to depend heavily on petrol and diesel for their private power generators. And with the pump prices of these products being constantly north-bound, coupled with their intermittent scarcity, any new increase in electricity tariff is sure to reflect on the prices of goods and services.
To be sure, rather than serve as a standby equipment, electricity generators have since become the primary source of power for industrial firms, some of which have had to run theirs for 24 hours a day. Again, even as they incur huge costs doing so, they still have to pay outrageous monthly electricity bills.
Indeed, the government meant well by pursuing a power sector reform which is aimed at stabilising electricity supply, improving cost recovery and attracting investment capital, but The Tide fears that this may still turn out to be one of those impeccable blueprints that became so badly executed as was witnessed during the inconclusive probe of a $10 billion power sector fund, recently.
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Editorial
No To Hike In Telecom Tariffs
Nigerians are outraged by the Federal Government’s approval of a 50 per cent increase in telecommunications tariffs, with organised labour threatening to mobilise workers to boycott telecom services. The Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) have described the upcoming tariff as outrageous, lamenting that it will worsen the already harsh living conditions of workers and the masses.
Similarly, the Coalition of Northern Groups (CNG) rejected the hike, stating that it was ill-timed and did not take into consideration the struggles of Nigerians. The Human Rights Writers Association of Nigeria (HURIWA) also criticised the review, calling it an illegal, unconstitutional, and oppressive policy that undermines the fundamental rights and freedoms of Nigerians. It is a difficult moment for the industry.
Recall that the Nigerian Communications Commission (NCC) approved a 50 per cent increase in tariffs for telecom operators last Monday, instead of the 100 per cent raise that operators had requested. This decision quickly angered the consumers’ association, which criticised the government’s approval as not only punitive but also insensitive.
We wholeheartedly agree with the stance of labour and other groups on this very sensitive matter. We unequivocally condemn the 50 per cent increase in telecom tariffs. Though telecom operators cite higher operational costs and inflation as reasons for the hike, the timing and impact raise serious concerns in the current economic situation. It is a blatant attack on the well-being of the Nigerian worker and a betrayal of the people to corporate interests.
Telecommunication services are essential for daily communication, work, and access to information. However, the average Nigerian worker already spends approximately 10 per cent of their wages on telecom charges. For a worker earning the current minimum wage of N70,000, this means an increase from N7,000 to a staggering N10,500 per month or 15 per cent of their salary, a cost that is unsustainable.
This hike exemplifies the government’s apparent ease in prioritising corporate profits over citizens’ welfare. It is shocking that the government approved a 50 per cent tariff increase for telecom companies within a month, yet took nearly a year to approve the recent minimum wage for workers, despite the rising cost of living and inflation eroding purchasing power.
The questions are: When will the government stand up for the citizens it swore to protect? When will the National Assembly rise to its responsibility and hold the Executive accountable for policies that blatantly undermine the welfare of the majority? When will the common man finally heave a sigh of relief in Nigeria? We urge the government, the NCC, and the National Assembly to review the implementation of this ill-advised increase.
It is difficult to understand the state of mind of the managers of the nation’s economy. Sadly, these managers have alienated themselves from the reality of today. How can a government approve a 50 per cent hike in the tariff of telecom services when even the N70,000 minimum wage has been eroded by inflation, electricity tariff hikes, exorbitant fuel costs, transportation, and other social services?
Even if there is a need for an increase, why does it have to be 50 per cent? If, after dialogue, it is agreed that a raise is necessary, we should all consider a more reasonable increase rather than the 50 per cent hike. Fifty per cent is excessive and will only worsen the already harsh living conditions of workers, placing a heavier burden and more suffering on them and the general population.
The recognition of telecommunication services as essential components of modern society cannot be overstated. In an era characterised by rapid digital transformation, these services are fundamental not only for personal communication but also for facilitating broader socio-economic engagement. The proposed tariffs increase in the telecom sector raises critical concerns regarding equitable access to vital services that support communication, education, healthcare, and commerce.
In a democracy, the people should be the central focus of all government actions and policies. Every decision should aim to improve their quality of life. This plan must be carefully scrutinised with the welfare of citizens in mind. An increase in telecom tariffs will negatively impact many Nigerians, as the internet has become an essential tool for business, communication, and daily activities.
The Tide calls for the immediate suspension of the 50 per cent hike in tariffs. Instead, we recommend a more reasonable adjustment of a maximum of 10 per cent, which balances industry sustainability with the current economic realities in the country. We also demand that the NCC engages in genuine, inclusive consultations with consumer advocacy groups, civil society organisations, and other grassroots stakeholders before implementing any tariff adjustments.
Editorial
Hurray, Siminalayi Fubara Is 50!
Born on January 28, 1975, in Opobo Town, Mr. and Mrs. Joseph and Love Fubara welcomed their second of five children and first son. His father, a former soldier who completed an overseas training tour of duty, instilled in him a strong sense of discipline and dedication. His mother, a civil servant, taught him the importance of hard work and perseverance.
He received his primary education at Opobo Primary School and continued his studies at Comprehensive Secondary School in Opobo. His passion for numbers led him to pursue a degree in Accountancy at the then Rivers State University of Science and Technology, now known as Rivers State University.
Upon completion of his Bachelor’s degree, he pursued further education and obtained a Master of Business Administration (MBA) and a Master of Science (MSc) from the prestigious University of Port Harcourt in 2013 and 2016, respectively. Fubara’s dedication to his studies and his commitment to personal growth have shaped him into the accomplished individual he is today.
Sim, fondly called by his colleagues, started his career in 2003 as a principal accountant at the Rivers State Senior Secondary Schools Board. His dedication led to his promotion to Director of Finance and Accounts at the Government House in 2015. In March 2020, he was appointed Permanent Secretary and then became the Accountant-General of Rivers State on December 23, 2020.
His achievements are numerous, as he is a Knight of the St. Christopher (KSC) Order of the Church of Nigeria Anglican Communion. Additionally, he holds the prestigious traditional chieftaincy title of Amaopusenibo of Opobo Kingdom. The Governor’s commitment to family is evident through his marriage to Valerie Ibiere Fubara, with whom he shares three beautiful children.
Among Siminalayi’s other significant qualifications and accomplishments are his fellowship with the Nigerian Institute of Management and his fellowship with the Association of National Accountants of Nigeria (ANAN). He holds membership in the Chartered Institute of Forensic and Investigative Auditors. His impressive background has gained him the trust and support of the Peoples Democratic Party (PDP), leading to his victory in the party’s governorship primaries for the 2023 general elections.
Fubara embodies a leadership style defined by simplicity and compassion. He exhibits patience, confidence, and empathy in his interactions with those he serves. His humility and faith in God make him trustworthy. Representing the younger generation, Sim leads with the slogan “Consolidating and Continuing the New Rivers Vision,” focusing on developing infrastructure, healthcare, education, security, agriculture, and investment opportunities for Rivers State.
The bravery exhibited by His Excellency in resisting godfatherism has attracted respect from a wide array of Nigerians, Africans, and supporters of democracy around the world. He emphasises serving the interests of the people of Rivers over any godfather. His actions unify diverse groups in the state, promoting a sense of belonging among various ethnicities.
Our affable Governor exemplifies robust moral leadership rooted in his Christian beliefs. As a devoted Knight, he shows compassion and selflessness in his governance. He fosters an environment where all religions can peacefully coexist. Fubara sponsored Muslim pilgrims for the 2024 Hajj and personally wished them well, encouraging them to pray for the state and Nigeria. His religious tolerance has earned him respect among Nigerians who value coexistence.
Moreover, the Governor’s appealing physique and charming smile have garnered admiration from many Nigerians, who view physical beauty as a reflection of inner qualities. His tall stature has solidified his status as a revered figure, commanding respect across the nation. Fubara has shown dedication to women’s issues by initiating several programmes in collaboration with the Women Affairs Ministry and the Office of the First Lady, highlighting his strong commitment to women’s empowerment and gender equality.
Sir Fubara has focused on actively involving young people in his governance by launching entrepreneurship and training schemes, notably the Rivers State Youth Empowerment Scheme. His efforts to support youth have earned him the backing of many young Nigerians. Additionally, he provides scholarships and makes donations to orphanages, demonstrating his commitment to investing in education for the benefit of children in the state.
Known for his strong commitment to national unity, this Governor reaches out to Nigerians from various backgrounds. As a state Governor, he demonstrates great nationalism by supporting citizens from other states, especially in Rivers. He respects the rule of law and democratic values, which has enabled past local government chairmen to complete their terms without issues. His effective management of Rivers State’s resources promotes transparency and accountability.
Despite facing numerous distractions, the Rivers Chief Executive has made remarkable strides in steering the state’s affairs, reflecting his unwavering focus and commitment to delivering results. He has encountered challenges but remains dedicated to his vision for a better state. His peaceful and caring leadership style has made him popular, inspiring new leaders to emulate similar qualities. By being strong yet compassionate, he has redefined the concept of leadership. Fubara’s selfless nature prioritises the state’s needs above his own. This has earned him widespread support.
As he commemorates his Golden Jubilee birthday today, even the most ardent critics, adversaries, and accusers cannot overlook that he embodies a worthy precursor in every sense.
Happy Birthday, His Excellency!
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