The recent approval of a 300% electricity tariff hike by the Nigerian Electricity Regulatory Commission (NERC) has sparked widespread debate and concern across the nation. This shift signifies a departure from electricity subsidy in the Nigeria Electricity Supply Industry, impacting primarily Band A customers who receive a minimum of 20 hours of power supply from the eleven electricity distribution companies.
Vice Chairman of NERC, Musiliu Oseni, clarified that only 15% of Nigeria's 12.12 million electricity customers fall under Band A and will be affected by the tariff hike. The implication is substantial, with affected customers facing a significant increase in electricity costs without a corresponding improvement in supply reliability. The tariff hike officially commenced on April 3, 2024, affecting Band A customers immediately.
Despite ongoing challenges with erratic power supply attributed to gas constraints, the tariff adjustment marks a notable policy shift in Nigeria's energy landscape, prompting critical discussions on affordability, sustainability, and consumer impact.
