- Higher tariffs in Band A cut electricity subsidies from N3 trillion to N1 trillion.
- Band A electricity remains nearly 50% cheaper than fuel or diesel.
- The government aims to support industrial growth and economic improvement with reliable, affordable energy.
Minister of Power Adebayo Adelabu announced that introducing higher tariffs in Band A has reduced electricity subsidies to N1 trillion from nearly N3 trillion.
At a public hearing on electricity tariffs organised by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation, Adelabu noted that subsidies would have reached N3 trillion without the tariff increase. He emphasised that the government cannot sustain this burden.
Adelabu detailed a new model where customers pay subsidies through Band A tariffs, reducing reliance on fuel and diesel. He asserted that Band A electricity remains cheaper than fuel or diesel, even with higher tariffs.
“Despite the increase, our tariffs rank among the lowest in sub-Saharan Africa. Neighbouring countries pay more. Connecting to Band A costs almost 50% less than generating power with fuel and diesel,” Adelabu stated. He added that businesses find grid connections more economical than self-generation.
Adelabu assured President Bola Tinubu’s administration focuses on improving conditions for Nigerians and supporting industrial growth through local manufacturing, which depends on reliable energy.
Deputy Speaker of the House of Representatives, Benjamin Kalu, addressed widespread discontent over the Nigeria Electricity Regulatory Commission’s (NERC) tariff hike. He explained that the increase aims to manage the power sector’s debt and ensure its operation.
Kalu expressed concerns that higher utility bills could worsen economic hardships, affecting business costs and increasing prices. He emphasised the need for collaboration with the executive to transform the power sector into a model of efficiency and sustainability.
“Lawmakers commit to supporting President Tinubu’s administration in reforming the power sector and removing legal obstacles,” Kalu said.