The Federal Government has given its nod for a decrease in electricity tariff for Band A customers, now set at N206.80/kWh, down from the previous rate of N225/kWh.
Band A customers, characterized by a minimum daily supply of 20 hours, will benefit from the adjusted tariff starting May 6, 2024. The announcement was made via a notice issued by Ikeja Electric to its customers on Monday. The notice assured customers of a guaranteed availability of electricity for 20-24 hours daily.
While the tariff for Bands B, C, D, and E remains unaltered, Band A customers will experience a notable reduction in their electricity bills.
It is noteworthy that the Nigerian Electricity Regulatory Commission (NERC) had earlier raised the tariff paid by Band A customers from N68/kWh to N225/kWh. These customers, constituting only 15 percent of the total electricity consumers nationwide, enjoy a relatively higher daily supply of electricity.
Moreover, Band A customers will no longer benefit from government subsidies on electricity, marking a shift in policy. This move has sparked mixed reactions across the country, with human rights lawyer, Femi Falana (SAN), criticizing the hike as being in favor of international financial institutions like the International Monetary Fund (IMF) and the World Bank.
Similarly, the Nigerian Bar Association (NBA), Ikeja branch, has issued a stern warning to the Federal Government and electricity distribution companies (DisCos), demanding a reversal to the previous electricity tariff within seven days or face legal action. The chairman of the branch, Mr. Seyi Olawunmi, condemned the almost 300 percent increase in electricity tariff as unreasonable and insensitive, emphasizing that NERC’s directive does not align with the current economic realities faced by average Nigerians.
