THE new Chairman of the Nigerian Electricity Regulatory Commission (NERC), Abdullahi Ramat, has unveiled plans to roll out a special tariff relief package for low-income Nigerians, schools, and hospitals under the Power Consumer Assistance Fund (PCAF), as provided for in the Electricity Act 2023.
News Point Nigeria reports that Ramat made this known in Kano on Wednesday while receiving the Chief Medical Director of the Aminu Kano Teaching Hospital (AKTH), Prof. Abdurrahman Sheshe, and his management team who paid him a congratulatory visit.
He explained that the fund, which had been dormant for years despite being enshrined in law, will now be fully activated by the Commission to shield vulnerable consumers and critical institutions from the impact of rising electricity tariffs.
“We are ready to implement the Power Consumer Assistance Fund to cushion the burden of high tariffs on poor households and vital institutions such as hospitals and schools. This is part of our mandate under the Electricity Act, and NERC will ensure its transparent and efficient administration,” Ramat said.
The PCAF, established under Section 122 of the Electricity Act 2023, is a structured subsidy mechanism designed to support underprivileged power consumers. It will be funded through a combination of Federal Government budgetary allocations and contributions from larger electricity consumers, especially industrial and “eligible customers.”
According to the Act, NERC will determine the rates of contribution and oversee disbursement to beneficiaries. Failure to remit contributions attracts stiff penalties, including fines up to three times the owed amount.
The Commission also plans to digitise the management of the scheme, ensuring accountability, transparency, and effective targeting of truly vulnerable households.
Ramat stressed that institutions like teaching hospitals and public schools will be among the first beneficiaries, as uninterrupted and affordable electricity supply is crucial to education and healthcare delivery.
“Hospitals cannot function efficiently without reliable power. That is why AKTH’s visit is timely, and why NERC is determined to ensure that critical service providers are supported,” he noted.
The NERC boss also urged AKTH and similar institutions to embrace energy audits, phase out obsolete equipment, and meter staff quarters to cut costs and improve efficiency.
Energy sector analyst Adetayo Adegbemle, convener of PowerUpNigeria, described Ramat’s decision as “a transformative approach,” noting that the PCAF offers a targeted alternative to blanket subsidies which have drained government finances.
He argued that with proper implementation, each low-income household could receive at least N5,000 worth of monthly electricity support, ensuring affordability while encouraging efficient energy use.
“This scheme should have been activated earlier. It allows DisCos to charge cost-reflective tariffs while ensuring that the poor are not left in darkness,” Adegbemle said.
Ramat, however, admitted that nearly 50% of generated power is lost due to inefficiencies, stressing that digitisation and enforcement of market discipline remain central to his agenda.