Nigerians to pay more for electricity, as NERC approves new tariff

Nigerians are in for another tough year after the Nigerian Electricity Regulatory Commission (NERC) approved a new increase in electricity tariff with effect from January 1.

In a directive signed by NERC Chairman, Sanusi Garba and the Commissioner Legal, Licensing and Compliance, Dafe Akpeneye, on December 31, the new tariff regime will mostly affect the Ibadan Electricity Distribution Company (IBEDC), which means consumers in the franchise area including Oyo, Ogun, Osun, Kwara and parts of Niger, Ekiti and Kogi States, will have to pay more for electricity.

The directive, tagged order number NERC/225/2020, stated that the tariff increase will remain in existence until a new order is made.

According to the order, tariff for customers in Band A which is a minimum supply of 20hrs daily, will increase by N6.85 to N69.18/kwh, a 10.98 percent rise. Tariff for customers in Band B, a minimum supply of 16hrs daily, will increase by 13.1 percent, N7.65 to N66.04/kwh from the present N58.9/kwh.

Read also: SERAP sues Buhari, NASS over increase in electricity tariff, fuel price

For customers in Band C, a minimum supply of 12hrs daily, the increase is 29.13 percent, N14.19 to N62.92/kwh.

The highest tariff increase will be for consumers in Band D, a minimum supply of 8hrs daily, with 121.5 percent, representing N32.79 hike to N55.76/kwh from N26.97/kwh.

NERC explained that the review was necessary following changes in inflation rate, foreign exchange rate, available generation, gas price, collection losses from ministries, departments and agencies of government, and Capex adjustments.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now