Nigerian Households Brace for Steeper Bills as NERC Unveils New Electricity Tariff Hike

The Nigerian Electricity Regulatory Commission (NERC) has announced a significant increase in electricity tariffs for customers under Band A, effective April 1. This crucial development means that consumers who typically receive between 15 and 20 hours of daily power supply will now face substantially higher charges for their electricity consumption, a decision poised to have a considerable ripple effect across the nation’s economic landscape.

Under the revised pricing structure, the tariff for Band A customers has surged from a previous N66 per kilowatt-hour (kWh) to a steep N225/kWh, marking an increment of over 200%. The federal government, through the Minister of Power, Adebayo Adelabu, has defended this adjustment, citing it as a necessary measure for cost recovery within the beleaguered power sector, aiming to attract vital investments and alleviate the substantial burden of electricity subsidies.

This tariff escalation arrives amidst a period of intense economic strain for many Nigerian households and businesses, already contending with high inflation, escalating fuel prices, and a noticeable erosion of purchasing power. Critics and various advocacy groups contend that the move is likely to further inflate the cost of living and potentially stifle the growth of small and medium-sized enterprises (SMEs), which are crucial to the country’s economic vitality. Labour unions and civil society organizations have voiced strong condemnation, imploring the government to reconsider its stance and prioritize the financial well-being of the average citizen.

While authorities assure the public that only approximately 15% of electricity consumers fall into the Band A category, thereby limiting the immediate impact of this specific increment to a minority, the broader implications for the entire power sector and the wider economy continue to be a subject of intense national discussion. The implementation of this new tariff is widely perceived as a critical litmus test for the government’s resolve in pursuing market-reflective pricing and its comprehensive agenda for economic reform.