The Nigerian government has announced plans to regularize the country’s electricity tariffs, seeking to address the significant disparities in tariffs between different consumer bands.
Minister of Power, Adebayo Adelabu, said this on Thursday at the public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja.
The current tariff structure has been deemed unfair, with consumers in Band B paying N63 per kilowatt-hour for 17-18 hours of electricity supply, while those in Band A pay N209 per kilowatt-hour for 20 hours of supply.
He emphasised that any adjustments to the tariff structure will not exceed the current Band A rate. Instead, the goal is to regularise the tariffs across different bands, ensuring a more equitable and sustainable system.
“We’ll look at the tariff again. I’m not saying that we’re going to increase the tariff before I’m misquoted. We’re going to look at the tariff and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but to also ensure that we’re able to invest more in revamping all these dilapidated infrastructures so that infrastructures that actually carry the kind of reliable electricity that we envisage for the sector.
“We’ll look at it. We thought the migration to Band A would be faster than what we’re having now, but we found out that the DisCos have refused to invest. They have refused to invest in this sector. Fine, it can be explained why, but a lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band-A.
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“We’ll look at the other bands, which are B to E. Let’s pull up the bands to A, B, and C, so that we can actually, because the gap between the Band A tariffs and the Band B, Band C, D, and E is just too wide. It’s just too wide, and the Band B that’s enjoying 18, 17 hours is paying N63 while the one that’s enjoying just 20 hours, just two hours difference of supply, is paying N209.
“So we believe it’s not fair. It is not just, and we must be able to carry out some level of regularization. So this is not a tariff increase. Our tariff will never go beyond what a Band-A is paying. But what we want to do is to regularise the tariff,” Adelabu said.
The Nigerian Electricity Regulatory Commission (NERC) had previously announced a hike in electricity tariffs for Band A customers in April 2023. However, the government has emphasized that any adjustments to the tariff structure will not exceed the current Band A rate.
The NIEP and IRP provide a comprehensive framework for the development of Nigeria’s electricity sector, prioritizing sustainable and equitable access to electricity for all citizens.
The policy aims to promote private sector investment, improve operational efficiency, and increase access to electricity for rural and underserved communities.
( Editor : Ena Agbanoma )
