Tensions have escalated in Nigeria’s electricity sector following the Enugu Electricity Regulatory Commission’s decision to slash tariffs for Band A customers, triggering pushback from power producers and distributors.
The cut, from N209 to N160 per kWh, has drawn support from state-level regulators but sharp opposition from the Association of Nigerian Electricity Distributors, ANED, who warn of sector-wide disruption.
ANED’s CEO, Sunday Oduntan, said the move risks collapsing payment discipline, already strained by over N5 trillion in debts and unmet federal subsidies.
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Generation companies echoed the concern, questioning how states can regulate prices for power they do not generate.
Industry analyst Lanre Elatuyi called for a phased competitive wholesale electricity market to restore confidence, urging the Federal Government to act swiftly.
Analysts warn the dispute, if unresolved, could damage investor confidence and worsen liquidity across the power value chain.
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