News

BREAKING: FG Increases Electricity Tariff for 20-Hour Power Supply Customers

The Nigerian Electricity Regulatory Commission has given the green light for an increase in electricity tariffs for customers classified under Band A.

Musliu Oseni, the Vice Chairman of NERC, disclosed that the approved increase will entail customers paying ₦225 per kilowatt-hour, up from the current rate of ₦66.

Band A customers are those enjoying a consistent 20 hours of electricity supply daily.

During a press briefing held in Abuja on Wednesday, Oseni stated that Band A customers represent 15 percent of the country’s 12 million electricity consumers. Additionally, he noted that some customers previously classified under Band A have been downgraded to Band B due to insufficient electricity supply from distribution companies.

“We are reducing the number of Band A feeders from 800 to under 500,” Oseni remarked. “This adjustment means that 17 percent of feeders now qualify as Band A, serving only 15 percent of total electricity customers connected to these feeders.”

He clarified that the tariff review will not impact customers in other bands.

Bloomberg, citing insider sources, reported on Tuesday that power companies will be permitted to raise electricity prices to N200 ($0.15) per kilowatt-hour for urban consumers, up from N68.

The move aims to attract new investments and reduce the approximately $2.3 billion spent on tariff capping. Additionally, Nigerians will now pay $2.42 per one million British thermal units (MMBtu) for natural gas, up from the previous rate of $2.18 MMBtu.

This development follows an announcement on Monday by the Nigerian Midstream and Downstream Petroleum Regulatory Authority regarding an increase in the price of natural gas, which is utilized for generating over 70 percent of Nigeria’s electricity.