The Academic Staff Union of Universities has cried out against the huge power bills paid by universities in the country estimated at N275bn annually, following the recent increase in electricity tariffs.
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.
The universities are under Band A where customers enjoy electricity for at least 20 hours daily.
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.
-Credit: Punchng
