Nigerian Government to Review Electricity Tariffs Amid Rising Costs in Other Sectors

The Nigerian government has revealed plans to reassess electricity tariffs for customers in Bands B and C. This initiative aims to address the unfair disparities in the current billing system and promote further investment in the power sector. Minister of Power, Adebayo Adelabu, announced this during a public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja.

At present, customers in Band B enjoy between 17 to 18 hours of electricity daily and are charged N63 per kilowatt-hour. In comparison, those in Band A, who receive just two additional hours of supply, pay N209 per kilowatt-hour. Adelabu labeled this pricing structure as unjust and affirmed the government’s commitment to establishing a more balanced and fair tariff system.

He stressed that while the government will be reviewing the tariffs, there are no immediate plans for an increase. The objective is to improve electricity supply and invest in upgrading the country’s aging infrastructure. Adelabu noted that the disparity in tariffs across different bands is excessive and requires attention.

This tariff review arrives at a difficult time for Nigerians, who are already grappling with rising costs in various sectors. Recently, telecom companies announced a 50% increase in tariffs, and new fees have been introduced, such as N100 for ATM transactions from other banks. Furthermore, there is a 4% customs administration charge on Free On Board (FOB) values and a 15% rise in port charges by the Nigeria Ports Authority. These escalating costs place additional financial strain on citizens, making the electricity tariff review even more crucial.