The Federal Government has announced plans to review electricity tariffs for customers outside the Band-A category, with the aim of bringing tariffs closer to the N206/kW paid by Band-A customers.
This move is part of the government’s efforts to ensure the commercial sustainability of the power sector.
According to the Minister of Power, Chief Adebayo Adelabu, the government can no longer sustain the N3 trillion subsidy on the power sector.
With power generation and distribution increasing by about 35% in 2024, Adelabu emphasized the need to review the tariff to ensure continued growth.
The government’s decision to review the tariff is driven by the need to reduce the subsidy burden and ensure the financial sustainability of the power sector.
The Minister noted that the migration to Band A should have been faster, but the DisCos refused to invest, leading to a delay in the migration process.
The proposed tariff hike is likely to affect consumers outside the Band-A category, who may see an increase in their electricity bills.
However, the government aims to bring tariffs closer to the N206/kW paid by Band-A customers, which may lead to a more equitable distribution of costs.
The government has announced plans to review the tariff, but no specific timeline has been announced.
