BREAKING: Federal Government Greenlights Electricity Tariff Hike

The Nigerian Electricity Regulatory Commission (NERC) has given its approval for an increase in electricity rates for customers classified under Band A.

During a press conference in Abuja, NERC’s Vice Chairman, Musliu Oseni, announced that the new rates would require users to pay N225 per kilowatt-hour, as opposed to the current rate of N66. Band A customers are those who receive 20 hours of electricity supply daily. Oseni stated that these customers make up 15% of the country’s 12 million electricity users.

He also mentioned that some customers in Band A have been downgraded to Band B due to not meeting the required hours of electricity provided by the distribution company. Oseni further explained that the number of feeders in Band A would be reduced from 800 to under 500, with only 17% now qualifying as Band A feeders.

This change will not affect customers in other bands. The decision to increase rates is aimed at attracting new investments and reducing the $2.3 billion spent on tariff subsidies.

Additionally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently announced an increase in the price of natural gas, which is used to generate over 70% of electricity in Nigeria.