The Nigerian government on Wednesday has announced increment in electricity tariff in the country.
The Nigerian Electricity Regulatory Commission (NERC) gives the go-ahead to raise the electricity rates for customers in the Band A category.
During a press briefing in Abuja on Wednesday, the Vice Chairman of NERC, Musliu Oseni, announced that there will be a rise in electricity tariffs.
This adjustment will result in customers paying N225 per kilowatt-hour, up from the current rate of N66.
“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500.
This means that 17 percent now qualify as Band A feeders. These feeders only service 15 percent 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.”
However, he noted that the review will not affect customers on the other Bands.
Bloomberg had on Tuesday reported that power companies will be allowed to raise electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers.
It quoted people in the presidency with knowledge of the matter saying this was in a bid to attract new investment and slash about $2.3 billion spent to cap tariffs (subsidies).
According to the news agency, “Nigerians will now have to pay $2.42 per one million British thermal units from the previous rate of $2.18 MMBtu.”
The development comes amid Monday’s announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of an increase in the price of natural gas, which is used to generate more than 70% of electricity in Nigeria.
