Adebayo Adelabu, the Minister of Power, has stirred discussion by asserting that electricity tariffs could decrease if the foreign exchange (FX) rate falls below N1,000. His remarks come in the wake of the Nigerian Electricity Regulatory Commission's (NERC) approval of an increase in electricity tariffs for customers under the Band A classification.
According to NERC's directive, customers under Band A, who receive over 20 hours of electricity supply daily, will now pay N225 per kilowatt (kW) as of April 3, up from N66. This move has faced criticism from stakeholders who deem it "ill-timed" amidst Nigeria's challenging economic climate.
In response to these concerns, Minister Adelabu defended the tariff hike, highlighting that it only affects 1.5 million out of 12 million customers. He emphasized the potential for tariff adjustments contingent upon addressing inefficiencies within the sector and improvements in the naira-to-dollar exchange rate.
During an appearance on Channels Television's Politics Today program, Adelabu underscored the government's commitment to transparency and engagement with power sector stakeholders. He outlined ongoing efforts to enhance power generation, aiming to increase capacity from 4,000 to 6,000 megawatts within six months—a historic milestone for the country.
Adelabu also provided updates on the Siemens project, indicating progress in the pilot phase involving the importation and installation of power transformers and mobile substations across Nigeria. He expressed optimism about the project's potential to bolster the nation's power infrastructure.
As Adelabu's remarks signal a potential shift in electricity tariff policy, stakeholders await further clarity on the government's strategies for addressing the complexities of Nigeria's power sector and ensuring affordability and accessibility for consumers.
