How High Court ruling for NERC to regulate electricity tariffs is bound to affect Nigeria

A recent ruling by a Federal High Court in Lagos has sent shockwaves through the Nigerian electricity sector. The court has ordered the Nigerian Electricity Regulatory Commission (NERC) to maintain the status quo regarding the planned electricity tariff hike. This ruling has raised concerns and questions about the transparency and consultation process involved in setting electricity tariffs in the country. Chinedu Anaje, Managing Partner at A02 Law, shed some light on the situation in a recent interview with CNBC Africa. Anaje emphasized the importance of following the proper procedure and engaging stakeholders, particularly consumers, in decisions regarding electricity tariffs. He pointed out that while cost-reflective tariffs are essential for improving services and infrastructure, the process must be transparent and inclusive. The key theme that emerged from the interview was the need for transparency and consultation in setting electricity tariffs. Anaje highlighted the importance of stakeholders, especially consumers, having a say in decisions that directly impact them. Here are three key points from the interview: 1. The Importance of Consultation: Anaje emphasized the need for consultation before implementing any tariff hikes. He mentioned that stakeholders, including consumers, should be involved in the decision-making process to ensure transparency and fairness. 2. Lack of Clarity on Tariff Increases: Anaje pointed out the lack of clarity surrounding the proposed tariff increases. He highlighted the confusion among consumers about how the tariff hikes will be implemented and whether the government will bridge the gap in the meantime. 3. Consumer Concerns: Anaje addressed consumer concerns about poor service quality and the need for infrastructure improvements in the electricity sector. He stressed that consumers are not opposed to tariff increases if they lead to better services, but they expect transparency and accountability in the process. In response to questions about the government's role in bridging the tariff gap, Anaje expressed concerns about the lack of clarity and transparency surrounding the issue. He called for more openness and communication from all parties involved to address consumer concerns. Anaje's insights shed light on the complexities of the Nigerian electricity sector and the challenges in setting fair and cost-effective tariffs. The court ruling has sparked a debate about the need for greater transparency and consultation in decision-making processes within the sector. As the situation continues to unfold, stakeholders will be closely watching how the government and NERC respond to the court's order and address the concerns raised by consumers.