The Federal Government says it is considering a review of electricity tariffs for customers outside the currently most expensive Band-A category.
The proposed hike aims to bring tariffs for other customer categories closer to the N206/kW paid by Band-A customers.
Breaking the news at the public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja, the Minister of Power, Chief Adebayo Adelabu, stated that the government could no longer sustain the N3 trillion subsidy on the power sector.
Adelabu emphasized that with power generation and distribution increasing by about 35% in 2024, ensuring the commercial sustainability of the industry became crucial for continued growth.
He said: “We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted.
“We are going to look at it 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 also to ensure that we can invest more in revamping all these dilapidated infrastructures.
“The migration to Band A should have been faster, but we found out that the DisCos refuse to invest. They have refused to invest in this sector.
A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A. It is taking a lot of time.”
Currently, customers in Band B, who enjoy 18 to 17 hours of electricity supply, pay N63 per kilowatt-hour.
Consumers in Band A, with 20 t0 24 hours supply, are charged N209 per kilowatt-hour.