Adedapo Adesanya
By Adedapo Adesanya
The Nigerian Electricity Regulatory Commission (NERC) has increased the electricity tariff of Band A customers across the country by 300 per cent to N225 per kilowatt-hour (kWh) from N68 per kilowatt-hour (kWh) with effect from today, Wednesday, April 3, 2024.
The Vice Chairman of NERC, Mr Musliu Oseni, confirmed the hike in the electricity tariff to newsmen at a press briefing in Abuja on Wednesday after earlier reports on the development.
Mr Oseni said Band A customers, who enjoy electricity supply for 20 hours per day, represent 15 per cent of the 12.5 million electricity customers in the country.
He emphasised that the increment does not affect others on other lower bands as the government is seeking to boost investment into the sector which is one of the most challenging in the country.
He added that the commission had also downgraded some customers on Band A to Band B due to non-fulfilment of the required hours of electricity provided by the electricity distribution company.
The Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, had said that the government would announce a price increase soon as it was under pressure to allow a price increase in the electricity sector.
The increment will chop off subsidies for high earners as it only budgeted N450 billion for the subsidy this year.
The government is expected to save close to N1.1 trillion per year from the jacking up of the tariffs for the customers on the Band.
Nigeria last reviewed electricity tariffs in 2020 and now, with the increase, the NERC believes it would help businesses recover costs and boost investment.
