The Nigerian Electricity Regulatory Commission (NERC) has greenlit an increase in electricity tariffs for customers falling under the Band A classification. Musliu Oseni, the Vice Chairman of NERC, disclosed that the approved increase will raise the tariff to N225 per kilowatt-hour, a significant jump from the current rate of N66.
Addressing reporters at a press briefing in Abuja, Oseni highlighted that customers categorized under Band A represent approximately 15 percent of the nation’s 12 million electricity consumers. He further noted that some customers previously classified under Band A have been downgraded to Band B due to the failure of electricity distribution companies to meet the required service hours.
Oseni revealed that the number of feeders classified as Band A will be reduced from 800 to under 500, with only 17 percent now qualifying as Band A feeders. These feeders, however, serve only 15 percent of the total electricity customers connected to them. Additionally, he mentioned that the commission has issued an order titled the April supplementary order, allowing for a tariff of 235 kilowatt-hours.
Notably, the tariff review will not impact customers falling under other tariff bands, ensuring stability for a majority of consumers. The decision to revise tariffs aligns with efforts to attract new investments and reduce the substantial $2.3 billion expenditure incurred in capping tariffs, as reported by sources within the presidency.
As part of this recalibration, the price of natural gas—critical for generating over 70 percent of Nigeria’s electricity—has also been increased, as announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority on Monday. This sequence of adjustments reflects a broader strategy aimed at bolstering the country’s energy infrastructure and fostering sustainable growth in the sector.
