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In a significant development, the Nigerian Electricity Regulatory Commission (NERC) has authorized a substantial increase in electricity tariffs, raising them from N68 to N225 ($0.15) per kilowatt-hour. The decision, announced by Musiliu Oseni, the Vice Chairman of NERC, will come into effect on April 1, 2024, and will primarily target urban consumers, designated as Band A consumers.
Oseni clarified that the tariff hike will affect only 15% of the nation’s electricity users, primarily those classified under Band A. Notably, these consumers account for 15% of the country’s total electricity consumption. The move aligns with the NERC Service-Based Tariff (SBT) program, which categorizes customers into different bands based on their daily power supply duration.
Under the SBT program introduced on November 1, 2020, customers are segmented into Bands A through E, depending on the number of hours of power supply they receive per day. Band A consumers enjoy a minimum of twenty hours of electricity supply, while Bands B through E receive progressively fewer hours.
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This tariff adjustment marks a significant shift in electricity pricing and consumption patterns, aiming to optimize revenue generation while ensuring more equitable distribution of electricity resources. As the implementation date approaches, stakeholders are closely monitoring developments, with NERC expected to provide further updates on the evolving situation.
Stay tuned for the latest updates on the electricity tariff increase and its impact on consumers across Nigeria.
