In a move that is expected to impact electricity consumers across Nigeria, the Nigerian Electricity Regulatory Commission (NERC) has announced an increase in electricity tariffs for customers in the Band A category.
The decision was unveiled during a recent press briefing in Abuja by Mr. Musliu Oseni, the Vice Chairman of NERC. Effective immediately, customers falling within the Band A category will see a significant rise in their electricity rates, with the tariff per kilowatt-hour jumping from the current rate of N66 to N225.
This adjustment marks a substantial increase in the cost of electricity for consumers categorised under Band A. Mr. Oseni elaborated on the specifics of the decision, revealing that the number of feeders classified as Band A will be reduced from 800 to under 500.
Despite this reduction, approximately 17 percent of the remaining feeders would qualify as Band A, serving only 15 percent of the total electricity customers connected to these feeders.
To formalise the tariff adjustment, NERC has issued an order titled the April Supplementary Order, which includes provisions allowing for a 235-kilowatt-hour consumption threshold. This move signifies a strategic effort by the regulatory body to streamline tariff structures and ensure greater efficiency in electricity distribution.
The decision to increase electricity tariffs for Band A customers comes amidst ongoing efforts to address challenges within Nigeria’s power sector, including issues related to distribution, transmission, and revenue collection. While the tariff adjustment may lead to increased revenue generation for electricity providers, it is likely to impact consumers’ household budgets and raise concerns about affordability.
