The Federal Government is considering further increases in electricity tariffs as part of a broader plan to phase out electricity subsidies nationwide. Minister of Power, Adebayo Adelabu, revealed this development during a briefing in Abuja.
This announcement follows closely on the heels of the Nigerian Electricity Regulatory Commission's recent tariff hike for customers in Band A, raising rates from N66 to N225 per kilowatt-hour. Adelabu emphasized that customers in other tariff bands can anticipate similar increases soon.
The proposed tariff adjustments align with the government's policy of transitioning towards a fully cost-reflective tariff over three years, albeit with sensitivity to the challenges faced by Nigerians.
Adelabu stressed the need for a gradual approach, labeling the move as a pilot initiative to gauge its effectiveness. He highlighted the substantial burden of electricity subsidies on the government, citing a projected expenditure of N2.9 trillion in 2024 alone, representing over 10 percent of the national budget.
