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Sam Amadi on Nigeria’s planned electricity tariff hike & COVID-19 impact
The 14-day lock-down of businesses in Lagos, Abuja and Ogun states, announced by President Muhammadu Buhari will begin tonight at 11 pm. This is less than 48 hours to the planned hike in electricity tariffs announced earlier in the year, which kicks in on the 1st of April? Should the tariff hike still hold bearing in mind recent development around the COVID-19 outbreak and lockdown? Sam Amadi, Former Director General of the Nigeria Electricity Regulatory Commission joins CNBC Africa for more.
Mon, 30 Mar 2020 13:05:01 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Former Director General Sam Amadi suggests the timing for the tariff hike might not be ideal given the economic challenges faced by consumers during the COVID-19 pandemic.
- Amadi proposes a temporary suspension of the tariff increase until the crisis subsides to provide relief to consumers.
- Effective monitoring, enforcement, and stable grid management are crucial aspects highlighted by Amadi to ensure the electricity sector functions optimally during the lockdown period.
As Nigeria faces a 14-day lockdown of businesses in Lagos, Abuja, and Ogun states due to the COVID-19 outbreak, questions arise about the planned electricity tariff hike set to take effect on April 1st. Former Director General of the Nigeria Electricity Regulatory Commission, Sam Amadi, discussed the implications of the tariff hike amidst the current crisis. Amadi suggested that the timing might not be right for the increase in tariffs, considering the economic strain on consumers during this period. He proposed a temporary suspension of the tariff hike until the pandemic subsides, allowing consumers some relief. Amadi also highlighted the need for effective monitoring and enforcement in the electricity sector, especially in light of the deadline issued for metering and capping estimated billing. The capacity to regulate and punish non-compliant operators remains a concern. In terms of grid management during the lockdown, Amadi expressed confidence that the grid could handle prioritizing power supply to the affected states, emphasizing the importance of stable grid management to prevent a national grid collapse. Ensuring the stability of power supply, particularly for essential services, is crucial during this challenging time.
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