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Reverse Electricity Tariff Hike, Our Bills Have Jumped to 300% - ASUU Cries Out
Posted by Thandiubani on Thu 15th Aug, 2024 - tori.ngThe National President, ASUU, Prof. Emmanuel Osodeke, called for per-unit billing as the universities’ power bill rose by 300 per cent, hitting N21.480b monthly.
The Academic Staff Union of Universities has lamented over hike in electricity tariff.
According to ASUU, the hike in tariff has left universities with huge power bills estimated at N275bn annually.
The National President, ASUU, Prof. Emmanuel Osodeke, called for per-unit billing as the universities’ power bill rose by 300 per cent, hitting N21.480b monthly.
In April 2024, the Nigerian Electricity Regulatory Commission announced an increase in electricity tariff paid by Band A customers from N68/KWh to N225/KWh, a 300 per cent increment.
According to a report by Punch, the universities are under Band A where customers enjoy electricity for at least 20 hours daily.
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However, many of the universities have cried out over the soaring electricity bills following the new policy.
Electricity is an essential need in the universities as they required in laboratories, libraries and for other critical purposes.
Before the tariff increase, all 274 universities in Nigeria paid N5,252,000,000 monthly or N63,024,000,000 yearly.
After the increase, the universities now pay N21,480,000,000 monthly and N257,760,000,000 annually.
Findings revealed that the University of Lagos, which previously paid an average bill of N180m, now spends N300m on power.
Osodeke, in an interview with The PUNCH, insisted that the Federal Government must ensure fairness to all, citing the increased electricity tariffs, which had risen sharply.
He emphasised that all users should be charged based on the actual units of electricity consumed, with a uniform rate, rather than being categorised into different bands.
Osodeke also criticised the Band A classification for the universities, stating that, “Electricity tariffs are a nationwide concern and not limited to universities alone. The idea of categorising consumers into bands such as Band A or Band B is flawed. Billing should be based on actual consumption, with a consistent per-unit rate for all users.
“If someone receives 14 hours of electricity, they naturally pay more because they use more, but automatically charging them more simply because they fall under Band A is illogical. This new system is terrible and unfair.”
Suggesting a way out, Osodeke stated, “We suggest that the rate should be equitable for everyone. People will pay more because they consume more energy, not because of arbitrary classifications. The system should be fair to all Nigerians, charging solely based on the actual electricity units consumed. Whether in universities, towns, or villages, everyone should pay the same rate per unit of energy consumed.”
However, the Committees of Pro-Chancellors and Vice-Chancellors of Nigerian Universities called for a concession in electricity tariffs for all 274 universities in Nigeria.
According to statistics provided by the Secretary-General of CVCNU, Prof. Yakubu Ochefu, the average monthly electricity cost for first-generation universities increased from approximately N80m to N300m, while for second-generation universities, it rose from N50m to N200m.
He noted, “Electricity costs for first-generation tech/agric universities increased from N30m to N150m. First-generation state universities also saw an increase from N30m to N150m. Second-generation state universities (1999/2000) experienced the same hike, from N30m to N150m.
“First and second-generation private universities’ costs rose from N10m to N60m and universities established by former President Goodluck Jonathan increased monthly from N20m to N100m.”
Ochefu maintained that the VCs committee had written a letter to the Federal Government in this regard, and the matter was now in the hands of the pro-chancellors, insisting that if the government did not give concession to the universities, students might have to pay an extra N80,000 for electricity.
“The vice-chancellors have done their part. Since the pro-chancellors have been inaugurated, they will continue from where the vice-chancellors left off because it’s a fundamental funding issue. For example, we reported that universities used to pay N1.2bn to N1.3bn annually for power.
“With the new tariff, that figure has risen to nearly N4b per annum. How are universities expected to find that kind of money? If you calculate it, that’s between N250m to N300m a month. Compare this to the 2024 budget where the overheads for power, water and overhead costs were less than N150m per annum, despite a previous budget of N1.2bn per annum. This depicts a shortfall of almost N900m.
“If the Federal Government does not assist, these costs will likely be transferred to students. For instance, if universities were to pass on these electricity costs to students, each student would pay an additional ₦80,000 per annum on top of their tuition fees. Is that what the Federal Government wants?” he asked.
The coordinator of CIPR at the Lagos State University, Mrs. Oluwayemisi Thomas-Onashile, noted that the university used to pay an average of N30m per month when the tariff was N68/kWh.
With the new tariff of N209/kWh, the average bill has risen to N92m per month.
Dr Joshua Suleiman of Babcock University reported that their monthly electricity bill ranges between N175m and N321m, compared to N94,011,193 and N118,477,338 last year.
Vice-Chancellor, University of Benin, Edo State, Prof. Lilian Salami, disclosed that the electricity bills for their two campuses were costed independently, but after being cut off in May after 19 days of supply, the bill totalled N150m.
Salami stated, “The University of Benin has two campuses: Ekehuan, where the university was established 54 years ago, and Ugbowo, the main campus. Previously, the university paid approximately N80m monthly to the Benin Electricity Distribution Company.
“However, with the tariff increase of over 300 per cent, the Ugbowo campus was classified under Band A, while Ekehuan was not, due to its inconsistent electricity supply. The bill for April was about N280m, despite students being on recess for 10 days. In May, BEDC disconnected supply after about 19 days and issued a bill of N150m. Consequently, the bill has surged from around N80m to N300m.”
The Committee of Pro-Chancellors of State-Owned Universities and the Committee of Vice-Chancellors both said the bill was unaffordable and unsustainable for the universities.
Speaking in an interview with The PUNCH, the Chairman of the Committee of Pro-Chancellors of State-Owned, Senator Joshua Lidani, said there had been reports of some universities having their electricity disconnected due to high bills.
He described this as alarming, adding that this would further strain universities’ finances and affect their operations.
Lidani added, “It is an ill wind that will do no good to the universities in the country, especially state-owned institutions already battling several challenges, notably funding and numerous other issues. We appeal to NERC and the various DISCOs not to hike the cost of electricity for universities but rather to grant them discounts or concessionary rates.
“We are alarmed by reports that some universities have had their electricity disconnected due to huge bills. This will only overburden the fragile state of university finances and may grind down their activities.”
The Pro-chancellor, Ladoke Akintola University of Technology, Prof. Deji Omole, expressed concern that the high electricity tariffs would significantly impact universities, lamenting that the combination of chronic underfunding and increased tariffs would severely affect the institutions.
He argued, “We don’t manufacture anything apart from knowledge, and we can’t increase prices except by making students pay more, which is not ideal. It will be counterproductive adding a burden on an already stressed system.
“The Federal Government should withdraw the plan and step down the additional tariffs, granting special concessions so we can carry out our research and make our laboratories functional. The increased tariffs will affect smooth operations.
“We implore the government not to implement these changes as they will be counterproductive. We don’t want the fragile peace in our universities to be jeopardised due to increased electricity tariffs.”
Omole added, “There is a lot of agitation, and we appeal to the government to understand the university system. No meaningful research will be carried out if universities cannot pay. There should be waivers on some of these bills.”
The Vice-Chancellor, Babcock University, Prof. Ademola Tayo, affirmed that the high electricity tariff was a great threat to quality education in Nigeria.
Speaking at the school’s 22nd convocation, Tayo said the institution paid N300m for electricity in May, despite utilising solar energy for street lights and other machines on the campus.
“I hereby call on the government to reduce electricity tariffs. High electricity tariff is a threat to quality education in Nigeria. University and education need support for the development of the country. Our university paid N300m in May after the increase in tariff of electricity consumers on Band A.”
The National President, the Senior Staff Association of Nigerian Universities, Mr Ibrahim Mohammed, condemned the government’s decision to hike electricity bills, saying it is harmful to the universities.
He argued that it would affect academic activities, as no public university could afford the increased costs.
“Our position is that it is a draconian and wicked decision for the government to consider. If not for the five universities that spoke out, it is quite unfortunate. There will be no academic research or classroom activities taking place in the universities.
“This is an affront to university education and shows our leaders don’t care if research and academics occur. No public university in Nigeria can pay these bills. Many of our members are already struggling to work; our computers are lying fallow, and no university can afford to buy diesel to run generators as an alternative to the public power supply.
“The idea of solar energy and renewable energy is not working anywhere. If the government is interested in making education work, universities should be insulated from the hike,” he insisted.
Mohammed urged the government to reconsider and insulate universities from the power tariff hikes, suggesting a focus on revitalising renewable energy initiatives.
He said, “The government should reconsider. Academic institutions should be given a separate format for paying bills if we are serious.
“Renewable energy initiatives that started during Buhari’s administration should be revitalised. Without these measures, there is no way education can operate effectively. SSANU frowns upon charging universities commercial rates; otherwise, they will remain glorified institutions.”
The National Chairman of the Parents Teachers Association, Mr Haruna Danjuma, in an interview with Punch, stated that increasing electricity bills in tertiary institutions would worsen the hardship on parents, guardians, and students.
He called for moderate charges, warning that increased costs could lead to mass dropouts.
Danjuma said, “The issue of hiking electricity bills in higher institutions shouldn’t arise. It will add to the hardship and give the impression that the government is not interested in educating Nigerian children. All institutions should either not be charged for electricity or be charged moderately. Parents are already paying a lot, and making universities pay more for electricity means that, indirectly, the government is not prioritising education.
“The Federal Government should reconsider this decision. Why should we have exorbitant fees that we cannot afford? This will lead to mass dropouts, creating another problem for the universities. We are calling on the government to reconsider. If we are asked to pay more, we will have no option but for our children to drop out.”
Speaking in the same breath, the National President of the National Association of Nigerian Students, Mr Lucky Emoefe, reiterated that VCs should not be blamed for proposing an additional N80,000 to cover the electricity bill.
He, however, urged the Federal Government to intervene, warning that students would mobilise and stage protests against any institution that added electricity bills to tuition.
Emoefe said, “We understand that the current situation is not necessarily the fault of the vice-chancellors, who have expressed concern. Imposing such high costs, like N80,000, on Nigerian students, who may take years to pay, is unsustainable. We will mobilise across all campuses in solidarity to resist these changes. If the government does not intervene, we are confident that this will not work and will face significant opposition.”
In response to Ochefu’s request for the Committee of Pro-Chancellors to negotiate the electricity tariff costs with the government, Lidani said, “We appeal to NERC and the various Discos not to hike the cost of electricity in the universities but rather grant them discounts or concessionary rates. We are liaising with the Committee of VCs and will arrange to meet with the appropriate government agencies on this.”
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