The Nigerian Electricity Regulatory Commission, NERC, announced a 240 per cent electricity tariff hike for band A customers who receive a 20-24 hour power supply on April 3.
The Minister of Power, Adebayo Adelabu, has stated that the hike in electricity tariff is temporary and expressed optimism about the reduction of electricity tariff.
Adelabu made this disclosure during the sectoral briefing by ministers in Abuja on Friday.
Following the outcry from the Nigeria Labour Congress (NUC) and the Trade Union Congress (TUC) for a reversal of the tariff hike, the Commission reduced the tariff by N18. However, Organised Labour threatened to go on strike, expressing dissatisfaction with the development.
Adelabu emphasized that the electricity hike for Band A customers is a temporary hardship pending an increase in power sector output. He compared the tariff to the initial price surge observed in the telecommunication sector, which eventually saw prices decrease over time.
He stated, "The electricity tariff might look expensive at the moment. But I’m optimistic that these tariffs will go down. We know how much we were buying SIM cards when the telcos just came. We know how much we were buying telephones. But gradually, as we scale up in generation, transmission, and distribution, these prices will also decrease. It’s a temporary hardship leading to a permanent gain."
In April, SaharaReporters reported that the Socio-Economic Rights and Accountability Project said it was suing President Bola Tinubu's administration over the arbitrary increase in electricity tariff.
The Nigerian government had approved N225 ($0.15) per kilowatt-hour tariff increment for Band A electricity consumers in the country. Band A customers are those who enjoy electricity supply for 20 hours per day. The Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musliu Oseni, who made this known at a press briefing in Abuja, stated that the increase would see the customers paying N225 instead of the current N66 kilowatt per hour.
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