ASUU Calls for Reversal of Skyrocketing Power Tariffs Amidst 300% Increase in University Bills

Academic Staff Union of Universities (ASUU) is sounding the alarm over a staggering rise in electricity costs for Nigerian universities. Following a dramatic increase in electricity tariffs, universities now face an annual power bill of approximately ₦275 billion—a staggering 300% hike.

Prof. Emmanuel Osodeke, ASUU’s National President, has strongly criticized the recent tariff adjustments. In April 2024, the Nigerian Electricity Regulatory Commission (NERC) announced a new tariff structure that saw rates for Band A users, including universities, jump from ₦68 per kWh to ₦225 per kWh.

Universities, essential hubs of learning that rely heavily on electricity for laboratories, libraries, and other critical functions, have been hit particularly hard. Before the tariff increase, the total monthly electricity bill for all 274 universities in Nigeria was ₦5.25 billion, amounting to ₦63 billion annually. Post-increase, these costs have surged to ₦21.48 billion per month and ₦257.76 billion annually.

For instance, the University of Lagos now spends ₦300 million monthly on electricity, up from ₦180 million previously. Prof. Osodeke argues that this tariff system is inequitable, suggesting that billing should be based on actual electricity consumption rather than arbitrary bands. He emphasizes that a uniform per-unit rate would be more fair and transparent.

“Electricity tariffs are a nationwide issue, not limited to universities,” Osodeke stated. “Categorizing consumers into bands such as Band A is flawed. Billing should reflect actual usage with a consistent rate for all.”

The Committees of Pro-Chancellors and Vice-Chancellors of Nigerian Universities are also calling for a reduction in electricity costs. According to Prof. Yakubu Ochefu, Secretary-General of the CVCNU, first-generation universities have seen their average monthly power costs rise from ₦80 million to ₦300 million, while second-generation universities face similar increases.

Ochefu warns that without government intervention, universities might be forced to pass these costs onto students, potentially adding ₦80,000 to each student’s fees annually. This, he argues, would place an undue financial burden on students and their families.

Several universities have reported significant hikes in their electricity bills. For instance, Lagos State University’s average monthly power expenditure jumped from ₦30 million to ₦92 million, while Babcock University’s bills have ranged between ₦175 million and ₦321 million, compared to ₦94 million and ₦118 million last year.

The University of Benin has seen its bill surge from ₦80 million to ₦300 million, with the additional costs attributed to a tariff increase of over 300%. Prof. Lilian Salami, Vice-Chancellor of the University of Benin, highlighted that the university’s electricity costs have become unsustainable, particularly given the significant fluctuations in billing.

Senator Joshua Lidani, Chairman of the Committee of Pro-Chancellors of State-Owned Institutions, expressed grave concern over the increased tariffs. He noted that some universities have even faced disconnection due to excessive bills, exacerbating the financial strain on these institutions.

Prof. Deji Omole, Pro-Chancellor of Ladoke Akintola University of Technology, echoed these concerns, stressing that the combination of underfunding and soaring energy costs is detrimental to universities. Omole called for the government to reconsider and reduce the tariffs to avoid negatively impacting the already fragile university system.

As the debate continues, ASUU and university leaders urge the Federal Government to take immediate action to address the skyrocketing energy costs and prevent further strain on Nigeria’s higher education sector.