Rising Tariffs and Taxation in Nigeria Spark Concerns Among Residents

Rising Tariffs and Taxation in Nigeria Spark Concerns Among Residents

The Yuletide festivities are over, and everyone is returning to the realities of life after the celebrations. There has been an increase in tariffs on many goods and services, such as house rent, electricity, data charges, and other social services, which should be regulated by the government.

The increase in electricity tariffs has become a widely discussed issue across Aba, the Enyimba city. The worst hit are those subscribers on the estimated billing system of Aba Power Limited (APL), who are struggling to adapt to the new billing system.

Our correspondent interviewed Mr. David, a resident of the 7up area in Aba under Band C of the 11KVA line. He stated that their electricity bill, which was formerly ₦9,000 in October 2024, had risen to ₦23,000 by January 2025, representing more than a 150% increase. According to him, APL marketers have avoided addressing the exorbitant tariff charges.

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Subscribers using the 33KVA line in Aba urban and its suburbs have also faced increased bills, with some reaching ₦50,000 in January 2025. This surge has sparked agitations from various quarters. The rising costs have led to a growing demand for prepaid meters, which, according to APL sources, are in limited supply.

Another 33KVA subscriber, Mr. Emeka Iroh, mentioned that APL management is organizing town hall sensitization seminars in select localities to update subscribers on recent billing developments. He noted that the Glass Industry Road and Ohuru Isimiri areas will host Aba Power representatives in the third week of January 2025.

A business owner running a cybercafé along Azikiwe Road in Aba urban lamented that the rising tariffs on data and airtime charges, shop rent, and electricity bills will not only cripple businesses in the state but may also lead to a collapse of revenue sources for families.

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He suggested that Aba Power distribute prepaid meters to subscribers, emphasizing that prepaid meters ensure fair treatment for electricity consumers in both residential and occupational areas.

Business owners who rely heavily on electricity expressed concerns about how they will survive, as a significant portion of their income now goes toward paying electricity bills and other charges. Those dealing in the sales of cold sachet water and drinks are particularly affected.

A female civil servant, who spoke anonymously, explained that an income earner receiving ₦70,000 as a monthly minimum wage and spending ₦50,000 on electricity bills would struggle to meet other basic needs. According to her, salaries for civil servants below grade level SGL 10 are insufficient to cater to family needs under the current tariff system.

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The rising tariffs present a difficult challenge, and many are pleading with the government and relevant organizations to implement changes that reduce costs, making Nigeria—and Aba—a better place.