Residents of Nigeria are rejoicing following the approval of a significant increase in the electricity tariff by the Nigerian Electricity Regulatory Commission (NERC).
Band A consumers will now experience a 300% hike in electricity costs, with the new rate set at N225 ($0.15) per kilowatt-hour, compared to the previous rate of N68.
Starting from April 1, 2024, power distribution companies (DisCos) will be given the green light to raise prices for urban consumers up to N225, thus marking a substantial jump from N68.
The announcement was made on Wednesday, April 3, by Musiliu Oseni, NERC's Vice Chairman, in the nation's capital, Abuja. Oseni clarified that this increase would only impact 15% of electricity customers nationwide.
Furthermore, Oseni disclosed that this particular customer segment, constituting 15% of the country's population, happens to consume a whopping 40% of the nation's electricity.
This revelation underscores the rationale behind the tariff hike, as it aims to address the imbalance in electricity consumption and ensure a more equitable distribution of resources among the population.
While the news of the tariff increase may raise concerns for some, it is undoubtedly viewed as a positive development for the majority of Nigerian residents, who have long endured inconsistent power supply. The move by NERC indicates a commitment to invest in improving the nation's electricity infrastructure, which will ultimately lead to enhanced access and quality of service for all consumers.
As the tariff increase takes effect this month, the hope is that the additional revenue generated will be channeled into modernizing the electricity sector, upgrading existing facilities, and expanding capacity to meet the growing energy demands of the Nigerian population.