Breaking News: NERC Hikes Electricity Tariff To N225 Per kWh

The Nigerian Electricity Regulatory Commission (NERC), on behalf of the Federal Government, has approved a 300 per cent increase in electricity tariffs for Band A consumers in the country.

NERC’s Vice Chairman, Musiliu Oseni, revealed this information in Abuja on Wednesday.

Power distribution companies (DisCos) will be permitted to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68 for urban consumers this month, effective from April 1, 2024.

However, Oseni revealed that the tariff hike will impact only 15% of the nation’s electricity consumers. He further explained that these customers, constituting 15% of the population, also consume 40% of the nation’s electricity.

‘Electricity Tariff To Rise By 300%’

Power companies in Nigeria are set to increase electricity tariffs to N200 ($0.15) per kilowatt-hour from the current N68.

Bloomberg news agency reported this anticipated hike, noting that it would affect about 15% of the population, who are said to consume 40% 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 and reduce the substantial $2.3 billion annual expenditure on electricity subsidies.

According to the platform, sources close to the presidency, familiar with the developments, revealed that these measures aim to make the energy market more financially sustainable and appealing to investors.

Furthermore, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently announced an increase in the price of natural gas, which fuels over 70% of the country’s electricity generation.

The Chief Executive Officer of NMDPRA, Farouk Ahmed, has declared a revision in the 2024 base gas price for power sector companies and commercial users. The new rate, set at $2.42 per one million British thermal units (MMBtu), marks a departure from the previous rate of $2.18. This adjustment comes as Nigeria continues to regulate electricity tariffs through the Nigeria Electricity Regulatory Commission (NERC) following the privatization of its generation and distribution sectors in 2013.

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