The Bola Tinubu-led Federal Government has approved a hike in electricity tariffs for customers classified under Band A.
This decision was announced during a press briefing in Abuja on Wednesday by Musliu Oseni, the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC).
According to Oseni, customers in this category, who receive 20 hours of electricity daily, will now pay N225 per kilowatt-hour, up from the current N66. He noted that these customers make up 15 percent of the country’s 12 million electricity consumers.
Additionally, some customers in Band A will be downgraded to Band B due to the failure of electricity distribution companies to meet the required hours of supply.
The commission, Oseni said, aims to reduce the number of Band A feeders from 800 to under 500, affecting only 17 percent of total electricity customers.
He said, “We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 percent now qualify as Band A feeders. These feeders only service 15 percent of the total electricity customers connected to the feeders.
“The commission has issued an order titled April supplementary order and the commission allows 235 kilowatts per hour.”
The review will not impact customers in other bands, News About Nigeria understands.
Recall that this publication earlier hinted at an impending increase in electricity tariffs.
According to Bloomberg, urban consumers could potentially see their rates rise to N200 ($0.15) per kilowatt-hour, as sources within the presidency revealed.
This action is purportedly aimed at stimulating fresh investments and curtailing the $2.3 billion expenditure on tariff subsidies.
Furthermore, the price of natural gas, which fuels over 70% of Nigeria’s electricity generation, has also increased, as announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Monday.
