The Nigerian Electricity Regulatory Commission approved a significant 250 per cent increase in electricity tariffs on Wednesday. Here is what Nigerians need to know about this hike.

It is worth noting that NERC has given its approval for 'Band A' electricity customers in Nigeria to be charged at a rate of N225 per Kilowatt.

In a noteworthy development, there has been a significant shift in the Nigeria Electricity Supply Industry regarding electricity subsidy. This comes at a time when the country is grappling with persistent issues of epileptic power supply across the nation.

Customers Affected by Hike

According to NERC, the eleven electricity distribution companies provided a minimum of 20 hours of power supplies exclusively to Band A customers.

Only 15 percent of Nigeria's 12.12 million electricity customers are affected, as stated by Musiliu Oseni, the Vice Chairman of NERC.

In a recent statement, he clarified that the increase in tariffs would have no impact on customers with less than 20 hours of power supply, specifically those on B, C, D, and E.

Implication of New Electricity Tariff

Electricity consumers under Band A will now face a significant increase in their power supply costs, with a hike of 250 per cent.

Customers under Band A will no longer receive any electricity subsidies, according to recent developments.

A band A significant number of households in urban areas in Nigeria have experienced a decline in customers.

NERC reports that Band A customers are responsible for consuming 40 percent of the country's electricity.

Unfortunately, despite the increase, there will be no positive impact on the electricity supply for the customers in question.

Date of hike commencement

Discos have started implementing the new electricity tariff as per the recent tariff order. The implementation began on Wednesday, 3rd April 2024.

Customers in Band A are now facing a staggering 300% increase in their electricity bills.

Since January 2024, customers in Nigeria have been experiencing frequent power outages, causing significant inconvenience.

In a recent statement, the Minister of Power, Adebayo Adelabu, pointed to gas constraints as the root cause of the unpredictable power supply situation in Nigeria.