If you think you are spending too much on electricity, then wait until you receive your next bill or make payment for your next power units.
You see, the Nigerian Electricity Regulatory Commission (NERC) has approved an increase of 300% electricity tariff for Band A consumers in Nigeria.
It was the Vice Chairman of NERC, Musiliu Oseni, who made this known in Abuja on Wednesday.
Power distribution companies (DisCos) will be allowed to raise electricity prices to ₦225 ($0.15) per kilowatt-hour from ₦68 for urban consumers from April 1, 2024.
But Oseni disclosed that the rate increase will only affect 15% of the electricity customers in Nigeria.
New Investment
According to the NERC boss, these customers represent 15% of the population.
They consume 40 per cent of the nation’s electricity.
The decision to raise the tariffs nearly threefold within weeks is part of Nigeria’s strategy to attract new investment into the energy sector.
This will reduce the substantial $2.3 billion annual expenditure on electricity subsidies.
Sources close to the presidency, familiar with the developments, explained what the decision could yield.
According to them, these measures will make the energy market more financially sustainable and appealing to investors.
Gas Price
Furthermore, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently announced an increase in the price of natural gas.
Don’t forget that the natural gas fuels over 70% of the country’s electricity generation.
The new 2024 base gas price has been set for power sector companies and commercial users.
This was revealed by NMDPRA’s chief executive, Farouk Ahmed.
Also Read: FG Increase Electricity Tariff (See New Rates)
It marks a shift from the previous rate of $2.18 to $2.42 per one million British thermal units (MMBtu).
Since the privatisation of its generation and distribution sectors in 2013, Nigeria has regulated electricity tariffs through the Nigeria Electricity Regulatory Commission (NERC).
