“Reduction in Cost of Production”: Pro-Tinubu Group Tackles Critics of Electricity Tariff Hike

• The Tinubu Media Support Group (TMSG) said the majority of Nigerians would continue to benefit from electricity subsidies despite the recent hike
• The chairman of the group, Jesutega Onokpasa said the increase would affect only people who get about 40 per cent of distributed power supply
• Onokpasa rubbished the claim that the new tariff would affect the productivity of manufacturers in the country

Legit.ng journalist Adekunle Dada has over 5 years of experience covering metro and government policy.

FCT, Abuja - The Tinubu Media Support Group (TMSG) said the recent increase in electricity tariff would affect only consumers enjoying about 40 per cent of distributed power supply in the country.

The group said the a significant percentage of Nigerians would continue to benefit from electricity subsidies.

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The chairman of the pro-Tinubu group, Jesutega Onokpasa, made this known in a statement obtained by Legit.ng in Abuja, on Monday, April 8.

Onokpasa said that the public outrage over the removal of electricity subsidy for 15% of consumers is unnecessary.

Why Tinubu deserves credit for electricity tariff hike

He said President Bola Ahmed Tinubu deserves credit for paving the way for improved power supply in the medium and long term after signing off on an action that shielded 85% of electricity consumers from tariff hikes.

"While it is true that the last tariff hike in Nigeria was in 2020, the distribution companies DisCos have been angling for what they described as cost-reflective tariff to help businesses recover costs and boost investment but it is to the credit of President Tinubu that what we have is a price adjustment that affects only consumers enjoying about 40 per cent of distributed power.

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"In addition, out of 800 feeders on Band A, 300 were removed. These are mostly those meant for residences. So, in effect, ordinary electricity consumers will experience no increase outside of consumers in Band B, C, D, and E. Also, those that will experience an increase will receive benefits of lower rates than the alternative power sources they were using."

Why electricity tariff hike won't affect manufacturers

The pro-Tinubu group also dismissed claims that the new tariff for premium electricity consumers would affect productivity in the case of manufacturers.

Onokpasa said the manufacturers will reduce their dependence on diesel-powered generators, and reduce their cost of production.

"So we are convinced that those claiming that manufacturers will pass on the extra cost to the consumer are being mischievous. What they are getting is a reduction in the cost of production, so the consumer should even be expecting lower prices instead.

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Obasanjo Farm, 27 feeders downgraded from Band A to E

Meanwhile, Legit.ng reported that the Ibadan Electricity Distribution Company (IBEDC) downgraded Obasanjo Farm and 27 other feeders from Band A to Band E.

According to the list, some areas dropped from 20 hours of daily power supply to zero hours. It was gathered that the 28 downgraded feeders are in Oyo, Ogun, Kwara and Osun states.

Source: Legit.ng