The Bola Tinubu-led government has hinted on the possibility of a reduction in the electricity tariffs being paid by Nigerians, especially Band A customers.
The Minister of Power, Adebayo Adelabu, says the N225 kilowatt-hours being paid by electricity consumers on Band A will reduce if the exchange rate falls below N1,000 per dollar.
Adelabu said this on Thursday, April 12, during an interview with ChannelsTV.
Recall that on April 3, the Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), announced that subsidy would no longer be paid on the electricity consumed by Band A customers.
Sequel to the new directive, Band A customers now pay N255/KWh compared to the N68/kWh prior as, while others maintain the old tariffs.
Responding to questions on the programme, the minister stated that the amount being paid by the Band customers is still cheaper than the amount being spent on fuel.
“The tariff is flexible. I can tell you if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff; and the tariff, even for Band A, will come down below the N225/KWh that we are currently charging,” Adelabu said.
“There are variable factors that go into the composition of the tariff, and we are not closing our eyes to it. We are publishing it, we are transparent, we are talking to Nigerians and all the power sector stakeholders. This administration is very serious, and we are committed to transforming the sector,” he added.
According to him, the current problems in the power sector had accumulated for over 50 years, saying it could not be resolved in a year.
“The problem we are having is an accumulated problem of over 50 years. It will not disappear in one year, but we’ve been making consistent and gradual progress,” he added.
The minister stressed that efforts are ongoing to upgrade customers on other bands to Band A as power generation improves in the next six months.
