Minister of Power, Adebayo Adelabu, has announced that the electricity tariff will decrease if the foreign exchange (FX) rate drops below N1,000. This statement comes amidst the Nigerian Electricity Regulatory Commission (NERC) approving an increase in electricity tariff for customers classified under Band A on April 3.
According to NERC, customers falling under Band A receive over 20 hours of electricity supply daily and will now pay N225 per kilowatt (kW) as of April 3, up from the previous N66. This decision has drawn criticism from stakeholders who deem the increase as “ill-timed” given Nigeria’s harsh economic conditions.
However, Adelabu defended the policy on April 5, highlighting that the tariff hike only impacts 1.5 million out of the 12 million total customers. Speaking on Channels television’s Politics Today programme, the minister emphasized the potential positive change in tariffs for Nigerians by addressing inefficiencies within the sector and benefiting from the naira’s gains against the dollar.
Adelabu’s remarks suggest a strategy to mitigate the impact of the tariff increase on consumers. By addressing operational inefficiencies within the electricity sector, coupled with favorable currency exchange rates, the minister aims to ensure that Nigerians experience a positive change in the tariffs they pay.
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The minister’s proactive stance reflects an awareness of the concerns raised by stakeholders regarding the tariff hike. Adelabu’s assertion of potential tariff reduction emohasiźes the government’s commitment to balancing economic realities with the need to provide affordable electricity to the populace.
Adelabu said, “The tariff is flexible and I can tell you that even if naira gains more and the exchange rate comes down below N1,000, it must positively affect the tariff and the tariff even for the Band A will come down below the N225 kilowatt per hour that we are currently charging.
“We are transparent. We are publishing it and we are talking to Nigerians, the consumers and all the power sector stakeholders.
“This administration is very serious and we are committed to transforming the sector.