Power minister says electricity tariff may reduce if FX rate drops below N1,000\$1

Adebayo Adelabu, minister of power has expressed optimism that electricity tariff will reduce if the foreign exchange (FX) rate drops below N1,000\$1.

This follows the increase in electricity tariff for customers under the Band A classification (customers who receive over 20 hours of electricity supply daily) from N66per kilowatt to N225 per kilowatt on April 3, 2024 by the Nigerian Electricity Regulatory Commission (NERC).

The development had attracted harsh criticism from Nigerians who described it as ill-timed and a move that would further aggravate the hardship experienced by Nigerians.

Clarifying this further on Channels television’s Politics Today programme on Thursday night, the minister said by cutting the inefficiencies of some operators in the sector, coupled with the gains by the naira against the dollar, the tariff paid by Nigerians should change positively.

READ ALSO:Deputy speaker, Kalu, promises Reps intervention in electricity tariff hike

“The tariff is flexible and I can tell you that even if naira gains more and the exchange rate comes down below N1,000, it must positively affect the tariff and the tariff even for the Band A will come down below the N225 kilowatt per hour that we are currently charging,” he said.

“There are variable factors that go into the compilation of the tariff and we are not closing our eyes to this.

“We are transparent. We are publishing it and we are talking to Nigerians, the consumers and all the power sector stakeholders.

“This administration is very serious and we are committed to transforming the sector.”

Adelabu also said the government is working tirelessly to ramp up power generation from about 4,000 megawatts to 6,000 megawatts in the next six months — “for the first time in the country’s history”.

By: Babajide Okeowo

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