The Nigerian government has approved a tariff increase for low-usage electricity consumers, or those who fall into Band A. The new rate will be N225 per kilowatt hour, up from N66.
The Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musliu Oseni, made the announcement that low-usage electricity consumers in Nigeria will see a significant increase in their tariffs. The new rate will be N225 per kilowatt hour, an increase of more than 200% from the current rate of N66. This announcement was made at a press briefing held in Abuja on Wednesday. Mr. Oseni explained that this increase was necessary to ensure the financial sustainability of the country’s electricity sector.
According to Mr. Oseni, the tariff increase will only affect the smallest segment of electricity customers in Nigeria, or those who fall into Band A. These customers make up 15% of the country’s total electricity consumers, or approximately 1.8 million people. They also enjoy the highest level of electricity supply, with an average of 20 hours per day. This means that the vast majority of electricity customers in Nigeria will not be affected by the tariff increase.
“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent now qualify as Band A feeders. These feeders only service 15 per cent of total electricity customers connected to the feeders.
“The commission has issued an order which is titled April supplementary order and the commission allows a 235 kilowatt per hour,” he said.