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Nigerian Electricity Tariff Hike: Implications and Implementation Explained.

Nigerian Electricity Tariff Hike: Implications and Implementation Explained.

After the Nigerian Electricity Regulatory Commission’s approval of a 250% electricity tariff hike, DAILY POST provides insights into its implications. Notably, NERC set N225 per Kilowatt for ‘Band A’ customers, marking a significant departure from past electricity subsidy practices amidst consistent power shortages nationwide.

Affected Customers:

NERC clarified that only ‘Band A’ customers, constituting 15% of Nigeria’s 12.12 million electricity consumers, would experience the tariff adjustment. Customers in bands B, C, D, and E, receiving less than 20 hours of power supply, remain unaffected.

Implications of the Tariff Hike:

The tariff hike translates to a 250% increase in costs for ‘Band A’ consumers, effectively eliminating electricity subsidies for this group. Despite Band A households representing 15% of urban residences, consuming 40% of the nation’s electricity, the hike isn’t expected to enhance service provision.

Commencement Date:

According to the tariff order, Distribution Companies (Discos) began implementing the new rates on April 3rd, 2024. Consequently, ‘Band A’ customers are now paying 300% more for electricity. Despite the increase, power shortages persist across all customer bands since January 2024, with gas constraints cited as a leading cause by the Minister of Power, Adebayo Adelabu.

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