In a move that could impact household budgets, the Nigerian Electricity Regulatory Commission (NERC) has approved a significant increase in electricity tariffs for a specific group of consumers.
The new policy, effective April 1st, 2024, applies a 300% hike to electricity rates for Band A customers. This translates to a jump from N68 per kilowatt-hour (kWh) to N225 per kWh.
It’s important to note that this increase is targeted. NERC vice chairman, Musiliu Oseni, clarified that only 15% of electricity consumers in Nigeria fall under Band A. However, this group is responsible for consuming a substantial 40% of the nation’s electricity.
The impact of this decision will likely be felt most acutely by high-consumption users, potentially including businesses and residences with extended electricity usage. The longterm implications for the electricity sector and the wider Nigerian economy remain to be seen.