Nigerians to pay more for electricity as NERC approves tariff increase

The Nigerian Electricity Regulatory Commission (NERC) has approved an increase in electricity rates for Band A consumers in Nigeria. 

Musliu Oseni, NERC’s Vice Chairman, announced during a press briefing in Abuja on Wednesday, April 3, 2024, that the new tariff will be ₦225 per kilowatt-hour, marking a notable jump from the existing rate of ₦66.

According to Daily Trust, customers classified under Band A receive 20 hours of electricity daily.

Oseni stated that these customers comprise 15% of the country’s 12 million electricity consumers.

He mentioned that some customers in Band A were downgraded to Band B because they still needed to receive the required hours of electricity from the distribution company.

Oseni said, “We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17% now qualify as Band A feeders. These feeders only service 15% t 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.”

He mentioned that the assessment will only impact customers in some categories.

According to a recent report referenced by the newspaper, power companies are set to increase electricity prices for urban consumers from ₦68 to ₦200 ($0.15) per kilowatt-hour.

Sources within the presidency indicated that this move aims to stimulate new investments and reduce the $2.3 billion subsidy expenditure.

The report says, “Nigerians will now have to pay $2.42 per one million British thermal units from the previous rate of $2.18 MMBtu.”

The recent update coincides with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announcing a rise in the cost of natural gas on Monday, April 1, 2023.

This gas is crucial for producing over 70% of Nigeria’s electricity.

Shehu Sani slams NERC

Former lawmaker Senator Shehu Sani condemned NERC's decision to increase the electricity tariff as he forecasted that businesses would be crippled.

The pragmatic ex-lawmaker stated this via a post on X shortly after the announcement by NERC.

His post reads, "Increasing electricity tariffs by 300% will finally electrocute human lives and businesses in the country."