The Lagos State Chamber of Commerce and Industry (LCCI) has asked the electricity distribution companies (DisCos) to adopt a strategic approach to the nation’s electricity pricing to facilitate a smooth transition to the new electricity pricing regime.
The LCCI made the demand while reacting to the recent statement by the management of the Nigerian Electricity Regulatory Commission (NERC) that there was no 50 per cent increase in electricity tariff.
The Director-General of the industry, Muda Yusuf, disclosed this during an interview with the News Agency of Nigeria (NAN) in Lagos on 5 January 2021.
Yusuf also called on the federal government to ensure a smooth transitioning to the new pricing regime, in order to minimise shocks and risk of pushback from the consumers.
According to him, the commercial arguments for a hike might be strong, as there was need for the importance of reckoning with the economic, social and political ramifications of such price reviews.
Yusuf added that the government needs to be strategic and gradual while implementing the transition framework to the new pricing regime.
The DG stated that to facilitate a smooth transition, the contexts of the transition should have a moderate effect on price movement at this time, as electricity is a product of high social significance.
He said: “Context matters in policy conceptualisation and implementation, and we need to worry about social and economic contexts.
“These contexts should have a moderating effect on price movement at this time, especially for a product of high social significance. It is important to take these factors into account in order not to put the entire reform process at risk.”