The Nigerian government has announced an increase in electricity tariffs for its Band A consumers. The rate has been revised from N206.80/kWh to N209.50/kWh, effective immediately.
This marks the second price hike this year, adding more pressure on businesses and industries that depend heavily on electricity. Francis Agoha, the acting managing director of the Ibadan Electricity Distribution Company Plc, confirmed that the Nigerian Electricity Regulatory Commission (NERC) approved this increase for Band A users.
According to a statement, the revision is driven by several critical economic factors, including exchange rate volatility, inflation, power generation capacity, and gas costs. These elements have substantially affected operational expenses, and the new tariff is intended to alleviate these financial challenges while maintaining the delivery of quality electricity services.
Agoha emphasized that the adjustment only impacts Band A customers, with rates for Bands B, C, D, and E remaining unchanged. He assured that the company remains dedicated to providing reliable and efficient electricity services across all customer categories. Recognizing that tariff changes can be concerning for customers, Agoha stressed the necessity of this adjustment to sustain and enhance service quality, aiming to offer the best value for money.
Similarly, Abdulazeez Abdullahi, head of corporate communications at Kaduna Electric, also notified customers about the tariff increase. He reiterated that the tariff for Band A feeders has been raised from N206.80/kWh to N209.50/kWh, while tariffs for Bands B, C, D, and E remain the same.
Previously, Nigeria adjusted the electricity tariff for Band A customers from N225/kWh to N206.80/kWh. This followed a prior increase by NERC, which saw the rate jump from N68/kWh to N225/kWh, reflecting an approximate 240 percent rise.
Nigeria, Africa’s most populous country, continues to grapple with chronic power shortages that have hindered economic growth for years. The nation’s electricity sector struggles with numerous issues, including an unreliable grid, gas supply problems, significant debt, and vandalism. Despite having an installed capacity of 12,500 megawatts, only about a quarter of that is produced, forcing many Nigerians to rely on costly diesel generators.