The Nigerian Electricity Regulatory Commission (NERC) said it has granted approval for a notable surge in electricity tariff aimed at customers classified under Band A.

This move, announced by NERC’s Vice Chairman, Musliu Oseni, signals a substantial adjustment from the current rate of N66 per kilowatt-hour to a new tariff of N225 per kilowatt-hour.

Band A customers, who typically benefit from 20 hours of electricity supply daily, represent approximately 15% of Nigeria’s total electricity consumer base, which stands at 12 million customers. Oseni also highlighted that the commission has taken steps to downgrade certain customers from Band A to Band B due to their failure to meet the prescribed hours of electricity provision by distribution companies.

The reduction in the number of feeders categorized under Band A, from 800 to under 500, is part of the commission’s strategy to ensure that only 17% of feeders now qualify for Band A status, serving 15% of total electricity customers connected to those feeders.

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It’s important to note that this tariff adjustment is not expected to impact customers in other bands. This decision aligns with broader efforts to attract fresh investments into the sector and alleviate the substantial financial burden, which amounts to about $2.3 billion annually, associated with tariff capping.

Moreover, in tandem with the electricity tariff hike, the Nigerian Midstream and Downstream Petroleum Regulatory Authority recently announced an increase in the price of natural gas, a key component for generating over 70% of electricity in Nigeria. These combined changes mark significant shifts in the energy landscape of Nigeria, impacting both consumers and industry stakeholders.