BREAKING: Tinubu Government Gives Condition For Reduction Of Electricity Tariffs

The Tinubu government has hinted at a potential reduction in electricity tariffs for Band A customers if the exchange rate improves significantly.

Currently, Band A customers pay N225 per kilowatt-hour, but this could decrease if the naira strengthens against the dollar.

The government is committed to transparency and working with stakeholders to adjust tariffs as needed.

The Bola Tinubu-led administration has indicated that Nigerians, particularly those in Band A, may soon see a reduction in electricity tariffs if the exchange rate improves significantly.

VerseNews gathered that this potential change could provide relief to Band A customers, who currently pay higher rates compared to other consumer groups.

The Minister of Power, Adebayo Adelabu, made the announcement during an interview with Channels TV on Thursday, April 12. Adelabu stated that the current rate of N225 per kilowatt-hour (KWh) paid by Band A customers could decrease if the naira strengthens against the dollar, bringing the exchange rate down below N1,000 per dollar.

This update follows a recent decision by the Federal Government, which, on April 3, instructed the Nigerian Electricity Regulatory Commission (NERC) to discontinue subsidies for Band A electricity consumers. As a result, Band A customers now pay N255 per KWh, a significant increase from the previous N68 per KWh, while customers in other bands continue to pay their old tariffs.

When asked about the tariff changes, Adelabu acknowledged that the new rates are higher but pointed out that they are still more affordable than the cost of fuel. He emphasized the flexibility of the tariff system and expressed optimism that improvements in the exchange rate would positively affect the current tariffs.

“The tariff is flexible. I can tell you that if the naira gains more value and the exchange rate drops below N1,000 to a dollar, it must positively impact the tariff,” Adelabu explained. “Even for Band A, the rate will decrease from the current N225/KWh.”

He also reassured Nigerians that the government remains transparent and committed to transforming the power sector, working closely with stakeholders to communicate the various factors that influence tariff composition.

The Minister’s comments suggest that the Tinubu government is actively monitoring the situation and could make adjustments to the tariffs as the economic landscape evolves.