The new Chairman of the Nigerian Electricity Regulatory Commission (NERC), Abdullahi Ramat, has announced that poor Nigerians, schools, and hospitals will soon benefit from a tariff relief package under the Electricity Act 2023.
Ramat said the relief will come through the Power Consumer Assistance Fund (PCAF), a special fund created by law to help vulnerable Nigerians pay for electricity. He spoke in Kano when he received the Chief Medical Director of Aminu Kano Teaching Hospital, Prof. Abdurrahman Sheshe, and his team on a congratulatory visit.
“I explained NERC’s plan to roll out the PCAF under the Electricity Act 2023, which will cushion tariff impacts for schools, hospitals, and low-income consumers,” Ramat said.
The fund will be financed by the Federal Government through the National Assembly budget. Some categories of electricity users, especially bigger consumers and industries, will also contribute. NERC will manage the fund, keep records, and decide how it will be shared.
“Our duty remains clear: to protect the rights of consumers while maintaining investor confidence by fostering an efficient, transparent market structure and investor-friendly ecosystem,” Ramat added.
He said the initiative will help balance affordability with sustainability in Nigeria’s electricity market.
Civil rights activist and power sector expert, Adetayo Adegbemle, welcomed the move, describing the PCAF as “a critical solution” to Nigeria’s electricity problems. He said unlike blanket subsidies that create huge debts, the PCAF will provide targeted financial support.
“Low-income households, which typically consume minimal electricity, will benefit from full subsidies, ensuring they are not excluded from access to power,” Adegbemle said.
He suggested a subsidy of at least N5,000 per customer monthly, equal to 25kWh of electricity.
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Ramat also promised to digitise the power sector, reduce losses, and fight electricity theft. He said NERC would launch an app to monitor payments and operations in real time and create a whistleblowing system for reporting theft and illegal connections.
“Honest customers should not continue paying for the crimes of electricity thieves. Ending electricity theft and vandalism is a journey we must all travel together,” he said.
Experts say proper accountability and clear identification of poor consumers will be key to the success of the scheme.