The Nigerian Electricity Regulatory Commission (NERC) has given its approval for an increase in electricity tariffs targeting customers falling under the Band A classification. This decision was announced by Musliu Oseni, Vice Chairman of NERC, during a press conference held in Abuja on Wednesday.
According to Oseni, customers in the Band A category will now be required to pay N225 per kilowatt-hour, a substantial increase from the current rate of N66. Band A customers typically enjoy 20 hours of electricity supply daily, constituting about 15 percent of the total 12 million electricity consumers in Nigeria.
During the press conference, Oseni revealed that some customers previously categorized under Band A have been downgraded to Band B due to inadequate hours of electricity supplied by distribution companies. He further explained that the number of feeders classified as Band A will be reduced from 800 to under 500, indicating a shift in the distribution of electricity supply.
The tariff adjustment, outlined in the “April Supplementary Order” issued by NERC, allows for a rate of 235 kilowatts per hour. However, Oseni emphasized that this tariff revision will not impact customers in other tariff bands.
In parallel developments, Bloomberg reported on Tuesday that power companies in Nigeria will now be permitted to raise electricity prices to N200 per kilowatt-hour for urban consumers, marking a significant increase from the previous rate of N68. This move is aimed at attracting new investments and reducing the financial burden associated with tariff capping, estimated at approximately $2.3 billion.
The decision to increase electricity tariffs comes amidst rising energy costs in Nigeria, compounded by an announcement from the Nigerian Midstream and Downstream Petroleum Regulatory Authority regarding an increase in the price of natural gas. Natural gas is a key component in generating over 70 percent of electricity in the country.
As consumers brace for higher electricity bills, the NERC’s decision underscores ongoing efforts to address challenges within Nigeria’s energy sector and ensure sustainable power supply across the nation.
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