The new electricity tariff increase, according to the Federal Government, will only impact a limited portion of consumers, specifically 1.5 million individuals.
A recent rise in electricity tariffs targeting Band A customers, who receive a minimum of 20 hours of power per day, has sparked discussions among Nigerians. Many argue that the nation is still dealing with the aftermath of fuel subsidy removal and escalating inflation.
However, Minister of Power Adebayo Adelabu, who recently suggested the government’s intention to discontinue electricity subsidies, reassured that the increase would not impact the majority of Nigerians.
“From the policy formulation perspective, the recent increase in tariff for only Band A customers which is just 15 per cent of electricity consumers in Nigeria. As of the latest statistics, there are a little about 12 million customers in the sector and this [tariff hike] would only affect about 1.5 million customers,” he said.
“The remaining 10.5 million customers will continue to enjoy the government’s subsidy at about 70 per cent.”
‘Government is Sensitive’
Nigeria is grappling with a consistent surge in inflation rates, currently standing at 31.70 percent as reported by the National Bureau of Statistics (NBS).
However, Adelabu mentioned that despite the government’s consideration of implementing a ‘cost-reflective’ electricity tariff, the economic circumstances of the nation led to the decision of not completely eliminating subsidies on electricity.
“The government is so sensitive to the pains of the people; to the sufferings of the people and we are not ready to aggravate this suffering any longer which is why we said it must be a journey rather than a destination,” the minister said.
“And the journey starts now. That we should do a gradual migration from the subsidy regime to a full cost-reflective regime and we must start with some customers.”
He, however, called on players in the power sector to give value to electricity consumers.
“Whatever consumers pay for, there must be commensurate value for it,” Adelabu said.