FG Takes Action: Band A Electricity Tariff Cut To N206.80/kWh For Affordability

FG Takes Action: Band A Electricity Tariff Cut To N206.80/kWh For Affordability....KINDLY READ THE FULL STORY HERE▶

The Federal Government has sanctioned a reduction in electricity tariffs for Band A customers, slashing it to N206.80/kWh from the previous N225/kWh rate.

Band A customers, who are entitled to a minimum of 20 hours of daily power supply, will benefit from this revised tariff structure. Ikeja Electric, in a notice to its patrons on Monday, confirmed the adjustment, emphasizing the guaranteed availability of electricity for 20-24 hours daily under the new tariff.

However, it’s important to note that the tariff rates for Bands B, C, D, and E remain unaffected by this adjustment.

The Nigerian Electricity Regulatory Commission (NERC) had previously raised the tariff for Band A customers from N68/kWh to N225/kWh. Band A customers represent a small fraction, just 15 percent, of the total electricity consumer base in the country. Moreover, they will no longer receive government subsidies on electricity.

The tariff hike had sparked widespread reactions across the nation. Human rights lawyer Femi Falana (SAN) criticized the move, alleging that the Federal Government was acting in the interest of international financial bodies like the International Monetary Fund (IMF) and the World Bank.

In a related development, the Nigerian Bar Association (NBA), Ikeja branch, issued a seven-day ultimatum to the Federal Government and electricity distribution companies (DisCos) to revert to the previous tariff or face legal action. The chairman of the branch, Mr. Seyi Olawunmi, deemed the nearly 300 percent increase in electricity tariffs as unreasonable and insensitive, especially considering the prevailing economic conditions.

The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) also joined the fray, calling for a reversal of the tariff increase within one week. They highlighted the adverse impact of erratic power supply on the country’s economic growth and urged the government to collaborate with citizens to formulate energy policies that serve the collective welfare.

Despite privatization efforts in the power sector over a decade ago, the challenges persist, reflecting a need for comprehensive reforms to ensure affordable and reliable electricity for all Nigerians.

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