The Nigerian Bar Association (NBA), Ikeja Branch, has given the Federal Government and Electricity Distribution Companies (Discos) a seven-day ultimatum to reverse the old electricity tariff or face a lawsuit.

The Chairman of the branch, Mr Seyi Olawunmi, said this at a news conference during the week in Lagos.

Olawunmi described the increase in the electricity tariff by almost 300 percent as not only unreasonable but also insensitive.

He said the National Electric Regulation Commission (NERC) order in respect to the tariff hike was not in line with the current economic realities of an average Nigerian.

He said the branch would seek appropriate remedies in the court if the Federal Government and concerned individuals failed to reverse the illegal electricity tariffs within seven days.

Olawunmi noted that NERC in December 2023, issued a new Multi-Year Tariff Order (MYTO 2024) which indicated a purported cost-reflective tariff chargeable by the various Discos.

He explained that a large chunk of the electricity tariff was reportedly absorbed by the Federal Government under a subsidy arrangement.

The chairman said that the purported subsidy had reportedly been removed by the Federal Government, leading to an over 300 percent increase in the electricity tariff payable by the end-user.

“We view this sudden astronomical increase in the end-user tariff irrespective of the technical arguments preferred in justification, as utterly exploitative and non-reflective of the current economic hardship that the masses are going through.

“The inflation and the depreciation of the Naira has affected their services that it is practically impossible to remain on the old tariff and electricity in Nigeria is not well priced.

“We, therefore, demand immediate stop to the illegal implementation of the N225 per kWh imposed on the so called band A customers at the discretion of both the Discos and NERC without any empirical basis.

“The classification into band A or B or C or D or E should be scrapped and it is either the Discos are guaranteeing 24 hours supply for all or they are not.”

Olawunmi said the government and the Nigerian people cannot continue to subsidise their inefficiency in the name of band A or B or C etc.

“If the government fails to reverse the illegal hike within seven days, we will be left with no choice than to seek appropriate remedies in the court of law,” the NBA Chairman said.

The Nigerian Midstream and Downstream Petroleum Regulation Authority (NMDPRA) says consultation with stakeholders and public hearing must be conducted to review proposed draft regulations of the Petroleum Industry Act (PIA).

The Authority’s Chief Executive, NMDPRA, Mr Farouk Ahmed, said this on Tuesday in Abuja at its stakeholder’s forum on Midstream Petroleum Host Community Development Trust (MPHCDT) regulation.

Ahmed, represented by Mr Ogbugo Ukoha, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, said consultation was necessary to provide a platform for harnessing ideas for the HCDT implementation.

“The regulation shall apply only to the Midstream Petroleum Host Communities and a holder of a license that is engaged in the midstream petroleum operation in accordance with Section 318 of the PIA.

“This is a platform for us to deliberate and get feedback on the draft regulations that we publish,” he said.

In an overview, Dr Joseph Tolorunse, the Authority’s Secretary and Legal Adviser, said the NMDPRA may by notice designate the facilities to which these regulations shall apply in accordance with the PIA.

He listed the objectives of the regulations to include the procedure for the establishment and administration of the Trust Fund for the midstream petroleum host communities and to establish parameters to safeguard the Trust Fund.

According to him, the regulation would also establish grievance resolution mechanism for the settlement of disputes between the host communities and licensees.

“The regulation will make general rules for the implementation of the development of the midstream petroleum host communities. It is expected to promote social and economic benefits from petroleum operations to the host communities.

“It will enhance peaceful and harmonious co-existence between the licensees, lessees and the host communities, as well as curtail pipeline vandalism and increase oil production,” he said.

Also speaking, Chairman, House Committee on Host Communities, Dounamene Dekor, said the committee had carried out a series of engagements to understand the current status of implementation of benefits to host communities.

He urged the Authority to expedite action to apply proactive and innovative mechanisms that would ensure the speedy and effective operationalisation of funding of host communities in the sector.

“We have noted some of the challenges that the authorities face in the implementation of the PIA, particularly the omission of the mainstream petroleum operations in Section 240-2 that provides for the funding of HCPs.

“Our committee is ready and already taking necessary legislative steps to address these gaps and challenges,” he assured.

Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has emphasised the strategic importance of investment in the gas sector, saying it was pivotal for driving industrialization, job creation and improvement of the livelihood of the generality of Nigerians.

The Minister stated this at the groundbreaking ceremony of Windek Energy Limited 20,000 Metric Tonnes (MT) Liquefied Petroleum Gas (LPG) depot project at Atabrikang, Aquaha in Ibeno Local Government Area, Akwa Ibom State at the weekend.

He lauded the vision and commitment of Windek Energy Limited in Nigeria’s journey towards energy security and economic prosperity.

A statement by the Spokesman to the Minister, Louis Ibah, which quoted Ekpo, said the project would boost ongoing efforts in ensuring affordable supply of LPG, commonly known as cooking gas, to Nigerians.

“This project marks a significant milestone in Nigeria’s journey towards energy security and economic prosperity. It will enhance access to clean and affordable cooking fuel,” the Minister said.

Ekpo thanked the Akwa Ibom State government for providing the enabling environment for investments to thrive.

He underscored the fact that the establishment of the LPG depot was a testament to the fruitful collaboration between the public and private sectors in the state.

The Gas Minister said the LPG depot project holds immense promises, not only for Akwa Ibom people, but for the entire nation.

Akwa Ibom State Governor, Pastor Umo Eno, in his speech thanked the Minister of State Petroleum Resources Gas, Ekperikpe Ekpo, for facilitating the establishment of the gas plant in the state.

Eno, represented by the Deputy Governor, Senator Akon Eyakenyi, also assured Ekpo and the management of Windek Energy Limited of the security of contractors and staff, as well as the support and collaboration of the host community in bringing the project to fruition.

MD/CEO, Windek Energy Limited, Mrs. Nosa Okunbor, said the project holds the prospect of  stimulating economic growth, fostering innovation, and facilitating the emergence of new industries and value chains within Akwa Ibom State.

“This project is not just about enhancing energy infrastructure, but about enhancing life such that our mothers will cook without hazards to their health,” she said.