Nigerians are set to experience another electricity tariff hike, which will likely burden households and businesses alike.
This increase may lead to higher living costs, straining family budgets and reducing disposable income.
According to Nigerian Electricity Regulatory Commission (NERC), Nigerians may witness another electricity tariff hike in October 2024, as the country’s monthly power subsidy skyrocketed to ₦181.63 billion in September.
Increase In Electricity Tariff Hike
This significant increase follows the Nigerian Electricity Regulatory Commission’s (NERC) removal of subsidies in areas categoriSed as Band A feeders on April 3, 2024.
The federal government’s electricity subsidy has been on an upward trend, rising from ₦102.30 billion in May to ₦163.87 billion in July.
Also, there has been an upward trend from ₦173.88 billion in August to ₦181.63 billion in September.
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In April, NERC approved a tariff hike for electricity consumers enjoying at least 20 hours of electricity daily. It raised their tariff to ₦225 per kilowatt-hour.
However, this decision was met with widespread criticism, particularly from labour unions, educational and health institutions. They say their electricity bills tripled, following the removal of the subsidy.
In response to the backlash, the government slashed the Band A tariff to ₦206.80/kWh in May, citing a fall in the dollar-to-naira exchange rate.
However, the tariff was increased to ₦209/kWh in early July as the subsidy rose again to ₦158 billion in June.
The Minister of Power, Adebayo Adelabu, has urged power distribution companies to take more energy to prevent grid collapse.
As the NERC concludes its Extraordinary Tariff Review process, the stakeholders await the outcome, hoping for a solution that balances the financial sustainability of the power sector with the affordability of electricity for Nigerian consumers.
