Amid Nigeria’s newly announced minimum wage of ₦70,000, workers are facing a severe financial setback due to a 300% increase in electricity tariffs.
According to a report from the Foundation for Investigative Journalism (FIJ), the hike has caused many minimum-wage earners to spend as much as 57% of their income on electricity bills.
A National Income, Salaries and Wages Commission (NISWC) document details that under the updated wage structure, civil servants receive roughly ₦77,500 monthly, or ₦930,000 per year.
But many, like Ayodele Dipo, a civil servant, report that the electricity costs have outpaced any relief from the pay increase.
“Before this hike, ₦5,000 worth of electricity lasted me two to three months. Now, it barely lasts a week,” Dipo lamented. “The government needs to address this because it’s eroding the benefit of the new minimum wage.”
The Nigerian Electricity Regulatory Commission (NERC) announced in April that the rate for Band A customers — those with 20 hours or more of electricity per day — would increase from ₦66 to ₦225 per kilowatt-hour.
Although the policy initially affected only 15% of customers, many users report being shifted to Band A without prior notice.
Joe Abah, a financial analyst, voiced his frustrations on social media, saying he now spends ₦100,000 monthly on electricity that barely lasts a week, questioning the lack of transparency and fairness in NERC’s approach.
The tariff hike has particularly impacted small businesses and low-income families, who must now decide between covering electricity costs or meeting essential needs.
“We’re in a bind,” said Kenneth Enobong, a security guard. “We need to pay for food, healthcare, and children’s education. Electricity can wait, but basic needs can’t.”
Dr Pogu Bitrus of the Middle Belt Forum criticised the policy, suggesting the government’s misguided approach.
“Policies like this, part of the larger energy strategy, should be reassessed to prevent undue burden on Nigerians. These tariffs sap incomes across all demographics, not just minimum-wage earners,” he said.
Both low-income earners and businesses are urging the government to reconsider the tariff increase, as the high costs of living make it challenging for Nigerians to sustain themselves.
Mr Kevin Abayomi, an engineer in Lagos, shared that his company’s electricity bill skyrocketed from ₦90,000 to ₦500,000 monthly since their shift to Band A.
He emphasised, “This isn’t sustainable. The government needs to step in to ease the financial burden on everyone.”
With rising discontent among Nigerians, the public continues to await government intervention that could provide much-needed relief amidst these escalating living expenses.
The article was originally published on Politics Nigeria.
