The federal government has suggested that electricity tariffs paid by Nigerians, especially Band A customers, may be reduced.
The Minister of Power, Adebayo Adelabu, mentioned that if the exchange rate falls below N1,000 per dollar, the N225 per kilowatt-hour paid by Band A customers will decrease.
Adelabu made this statement during an interview with ChannelsTV on Thursday, April 12.
On April 3, the Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), announced that subsidy for electricity consumed by Band A customers would be discontinued.
As a result, Band A customers now pay N255/kWh instead of the previous N68/kWh, while other customers continue to pay the old tariffs.
The minister responded to questions about the program by stating that Band customers are still paying less than the cost of 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.
He explained that the issues in the power sector have been building up for over 50 years and cannot be fixed in just one 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 emphasized that they are working to move customers from lower bands to Band A as power generation improves in the next six months.
