The Federal Government has announced plans to increase electricity tariffs for customers outside the Band A category as part of efforts to improve the financial stability of the Nigerian Electricity Supply Industry (NESI).
Why the Tariff Increase?
The proposed adjustment aims to bring non-Band A customers’ tariffs closer to the N206/kW rate currently paid by Band A consumers, who represent approximately two million electricity users.
Speaking at the public presentation of the National Integrated Electricity Policy (NIEP) and the Nigeria Integrated Resource Plan (NIRP) in Abuja, Minister of Power, Chief Adebayo Adelabu, stressed that the government can no longer sustain the N3 trillion subsidy on electricity.
What This Means for Consumers
- Higher tariffs for non-Band A customers
- Improved liquidity in the power sector
- Potentially better electricity supply with increased investment
Adelabu noted that with power generation and distribution rising by 35% in 2024, ensuring commercial viability is crucial for the growth and stability of the sector.
While details on the tariff adjustments remain unclear, the move signals a shift towards cost-reflective pricing, which could impact millions of Nigerian households and businesses.
