Tinubu Raises Electricity Tariff; Here is the Current Cost Per Unit

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Ifytex Chibuzor

NERC, the electricity regulatory body in Nigeria, has given a nod to an increase in the electricity tariff; hence, electricity distribution companies in the country have increased their electricity tariff by 300% and guess what? The increment has immediate effect

The Nigerian Electricity Regulatory Commission sighted numerous reasons for the increase in tariff plans, especially the recent increase in the price of natural gas by NMDPRA and the inability of the government to continue subsidizing electricity in the country. However, this sudden hike will only affect electricity consumers that fall under Band ‘’A’’.

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Reasons for the Electricity Tariff Hike

There are numerous reasons why NERC increased the electricity tariff. Some of the reasons are:

inflation rate in the country
Unit cost for Power generation
Fluctuating exchange rate
Average cost of kilowatt by Discos.
Recent increase in the price of natural gas by NMDPRA

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Electricity Consumers Affected by the 300% Tariff Hike

Those that are affected by the increase in the electricity tariff are those in Band ‘’A’’. These are electricity consumers who live in government residential areas, capital cities, and other electricity users who enjoy a minimum of 20 hours of uninterrupted power supply daily.

This means that this tariff increase only affects 15% of the 12 million electricity consumers in the country. So, electricity consumers in ”Bands B, C, D, and E” won’t be affected by this increase.

Current Cost of Electricity Tariff in Nigeria

The current electricity tariff in Nigeria is ₦225 kilowatts per hour. This was made known by Musliu Oseni, who is the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC).

It would be recalled that the old tariff plan was ₦66 kilowatts per hour. So, electricity consumers in Band ‘’A’’ will start paying ₦225 for kilowatts on an hourly basis.

Who are the Band ‘’A’’ Electricity Consumers?

These are electricity consumers who enjoy at least 20 hours daily power supply. This means that if you don’t enjoy a minimum of 20 hours of power supply, the recent tariff hike won’t affect you.

How Many Bands of Electricity Consumers Are There in Nigeria?

There are about five different bands of electricity consumers in Nigeria. They include:

Band A: electricity consumers that enjoy a minimum of 20 hours of daily power supply.

Band B: electricity users that enjoy a minimum daily power supply of 16 hours

Band C: These are consumer that usually have a minimum daily power supply of 12 hours

Band D: They enjoy a minimum of 8 hours daily power supply

Band E: These are the electricity consumers that enjoy daily power supply of about 4 hours

Impact of the Recent Electricity Tariff Hike on Consumers

Since the declaration of the electricity tariff hike on April 3, 2024, by NERC through its vice chairman, Musliu Oseni. There has been an outcry by the electricity consumers in the country, noting its impact on the socio-economic situation of the country. While few experts in the power sector eulogized the move, many Nigerians, including civil society organizations, condemned the hike, noting its bad timing and negative impacts on the livelihoods of Nigerians and small scale businesses.

According to Comrade Ibrahim M. Zikirullahi, who is a member of a civil society organization and the Executive Director of the Resource Centre for Human Rights and Civic Education (CHRICED), he expressed dismay at the sudden hike.
In his word: “This move disregards the struggles of millions of Nigerians who have been pushed further into poverty as a result of the abrupt and poorly planned removal of fuel subsidies.”

Conclusion

This increase in electricity tariff is subject to review periodically. So, there may likely be an increase in the price of electricity units in the country. This means that if you are under Band A, you are likely going to pay higher than other electricity users in the country.