FG Raises Electricity Tariff for Band A Customers

The Federal Government has announced an increase in the electricity tariff for Band A customers, who are individuals enjoying electricity supply for 20 hours per day.

During a press briefing held in Abuja on Wednesday, Musliu Oseni, Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), revealed that the adjustment would see customers paying ₦225 per kilowatt-hour, a sharp rise from the current ₦66 rate.

Oseni highlighted that Band A customers constitute 15 percent of the country’s 12 million electricity consumers. He further stated that due to non-compliance with the stipulated hours of electricity provision by the electricity distribution company, some customers on Band A have been downgraded to Band B.

“We currently have 800 feeders categorised as Band A, but it will now be reduced to under 500,” Oseni explained. “This means that 17 percent now qualify as Band-A feeders, serving only 15 percent of total electricity customers connected to the feeders.”

He emphasised that the tariff revision would exclusively impact customers in Band A, with no repercussions for those in other bands.

The decision comes following a report by Bloomberg, indicating that power companies have been granted permission to hike electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers. Sources within the presidency disclosed that this move aims to attract fresh investments and cut down the approximately $2.3 billion allocated to tariff subsidies.

Also, in response to the increase in the price of natural gas for power generation, announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerians will now face a higher cost of $2.42 per one million British thermal units compared to the previous rate of $2.18 MMBtu.