In the wake of the Nigerian Electricity Regulatory Commission (NERC) approving a staggering 250 percent electricity tariff hike on Wednesday.
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This article shows a breakdown of what Nigerians need to know about this significant development.
Okay.ng recalls that NERC approved N225 per Kilowatt for ‘Band A’ electricity customers in Nigeria.
The development represents a significant shift from electricity subsidy in the Nigeria Electricity Supply Industry amid persistent epileptic power supply nationwide.
Customers Impacted by the Hike
- According to NERC, only Band A customers, who receive a minimum of 20 hours of power supply from the eleven electricity distribution companies, will be affected.
- Vice Chairman of NERC, Musiliu Oseni, revealed that a mere 15 percent of Nigeria’s 12.12 million electricity customers fall into the Band A category.
- Oseni clarified that the tariff hike will not impact customers in Bands B, C, D, and E, who experience less than 20 hours of power supply.
Ramifications of the New Electricity Tariff
- The hike translates to electricity consumers under Band A paying a staggering 250 percent more for power supply.
- This effectively eliminates electricity subsidies for Band A customers.
- Band A customers comprise 15 percent of households in urban areas across Nigeria.
- NERC estimates that Band A customers account for 40 percent of the country’s total electricity consumption.
- However, the hike will not result in any improvements to the electricity supply for affected customers.
Effective Date of the Hike
- According to the new tariff order, Discos commenced the implementation of the new electricity tariff on Wednesday, 3rd April 2024.
- This means that customers under Band A have already begun paying 300 percent more for electricity.
Electricity Tariff Hike for Band A Customers – Table
| Band | Hours of Supply | Old Tariff (N/kWh) | New Tariff (N/kWh) | Percentage Increase |
|---|---|---|---|---|
| A | ≥ 20 hours | 66 | 225 | 250% |
