FG Approves Steep Increase in Electricity Tariffs Amid Erractic Power Supply

By Iyojo Ameh

Amidst ongoing challenges with erratic power supply, the Nigerian Electricity Regulatory Commission (NERC) has sanctioned a significant hike in electricity tariffs, particularly affecting customers classified under Band A.

Band A customers, who currently enjoy up to 20 hours of electricity supply per day, will now face a substantial increase in their electricity bills.

Mr. Musliu Oseni, Vice Chairman of NERC, announced that these customers will be required to pay N225 per kilowatt-hour, a sharp rise from the previous rate of N66.

Speaking at a press briefing in Abuja, Oseni acknowledged that Band A customers constitute 15 percent of the country’s 12 million electricity users.

He disclosed that some customers previously categorized under Band A have been downgraded to Band B due to their failure to receive the minimum required hours of electricity from distribution companies.

Oseni emphasized, “We currently have 800 feeders classified as Band A, but this number will now be reduced to under 500. This means that 17 percent now qualify as Band A feeders, serving only 15 percent of total electricity customers connected to these feeders.”

The commission also introduced an order, known as the April Supplementary Order, which permits a tariff increase to 235 kilowatt-hours per hour.

Despite concerns raised over the tariff hike, Oseni assured that customers in other bands would not be affected by the adjustment. The decision has sparked controversy amidst persistent challenges regarding the reliability and consistency of electricity supply across Nigeria.