Electricity Tariff: Prepaid Meter Distribution Issue Paramount as FG Concedes to Labour Demands

The Federal Government of Nigeria has directed all power distribution companies (DisCos) to suspend the current electricity tariff review. She has also set up a Technical Committee on Electricity Tariff Policy meant to examine the justification for the electricity tariff review, and review the deployment of meters and inform the Federal Government on the issues that are hindering the implementation of the nationwide prepaid metering. The committee, which will be chaired by the honourable Minister of State for Labour and Employment, Festus Keyamo, is mandated to commence work immediately today, and given two weeks to report back to the Federal Government.

The Federal Government disclosed this in a press release this morning, while informing the general public of the resolutions reached between herself and the organised labour. Hereunder is the press statement:


The Federal Governmment and Organised Labour (NLC, TUC and others) held consultation meetings on September 15, 24 and 27, 2020. 

Following the extensive deliberations, the following resolutions have been reached:A Technical Committee on Electricity Tariff policy has been established. It is chaired by the HMS Labour and Employment Festus Keyamo, and comprises Federal Government’s MDAs, the NLC and TUC, and will work over the next two weeks, starting today.

Its mandate shall include:

  • Examine justification for the electricity tariff review
  • Review the deployment of meters and advice FG on issues hindering implementation.

During this two-week period, DISCOs will suspend implementation of the electricity tariff adjustments.

The PMS subsidy regime has stifled downstream sector growth. In addition, the dire financial circumstances of the Federation preclude the ability to sustain any subsidy on PMS, and thus makes the deregulation of the sector inevitable. The NNPC will expedite rehabilitation of its Refineries, with a 50% completion target for Port Harcourt by December 2021.

NNPC will integrate national leadership of NUPENG and PENGASSAN into the Steering Committee already established to oversee the Rehabilitation Exercise.

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