Yesterday, the Nigerian Electricity Regulatory Commission (NERC) made an important announcement regarding electricity tariffs. They revealed that there would be an eight percent reduction in the tariff for customers in Band A. This means that the amount these customers pay for electricity per kilowatt-hour (kWh) will decrease from N225 to N206.8.
This decision was explained in a statement released in Abuja. NERC pointed out that the reduction was influenced by changes in certain economic factors, particularly the strengthening of the Naira against the Dollar in the foreign exchange market. Essentially, the improved value of the Naira led to a revision in the electricity tariffs.
NERC operates based on a specific methodology for determining tariffs, and they issued a revised tariff order for May 2024 to the eleven electricity distribution companies across Nigeria. The aim of this reduction is twofold: to alleviate some of the financial burdens faced by customers in Band A while also ensuring that the regulatory framework for the Nigerian Electricity Supply Industry remains balanced and effective.
Before this reduction, NERC had faced criticism for its decision to increase tariffs for approximately two million customers in Band A. Although this move removed subsidies from the Federal Government for these customers, it guaranteed a minimum of 20 hours of electricity supply. However, the utilities struggled to meet this target, resulting in daily apologies to affected customers for the shortfall in supply.
Responding to the tariff reduction, the electricity distribution companies (DisCos) promptly informed customers through social media. Among others, Abuja DisCo and Kaduna Electric confirmed the downward revision of tariffs. They assured customers on Band A feeders that despite the reduction in tariffs, they would continue to enjoy electricity supply for 20-24 hours daily. Additionally, it was emphasized that tariffs for customers in Bands B, C, D, and E remained unchanged.
