Federal Government has suggested the potential for a decrease in electricity tariffs for Nigerians, particularly for Band A customers.
The Minister of Power, Adebayo Adelabu during an interview with ChannelsTV on Friday said if the exchange rate drops below N1,000 per dollar, the current N225 per kilowatt-hour rate for Band A customers could be reduced.
The Nigerian Electricity Regulatory Commission (NERC) had announced an increase in tariffs on April 3, adding that subsidy would no longer be provided for Band A customers, their electricity tariffs increased to N255/KWh from the previous N68/KWh, while others maintained their previous rates.
In response to inquiries during the program, the minister noted that the tariff paid by Band customers remains lower than the cost of fuel.
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“The tariff is flexible. I can tell you if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff; and the tariff, even for Band A, will come down below the N225/KWh that we are currently charging,” Adelabu said.
“There are variable factors that go into the composition of the tariff, and we are not closing our eyes to it. We are publishing it, we are transparent, we are talking to Nigerians and all the power sector stakeholders. This administration is very serious, and we are committed to transforming the sector,” he added.
According to him, the current problems in the power sector had accumulated for over 50 years, saying it could not be resolved in a year.
“The problem we are having is an accumulated problem of over 50 years. It will not disappear in one year, but we’ve been making consistent and gradual progress,” he added.
The minister stressed that efforts are ongoing to upgrade customers on other bands to Band A as power generation improves in the next six months.
