In a recent appearance on Channels Television’s Politics Today, the Minister of Power, Adebayo Adelabu, addressed the recent increase in electricity tariffs, hinting at a potential reduction under specific circumstances.
Following the Nigerian Electricity Regulatory Commission’s (NERC) announcement on April 3, stating the removal of subsidies on electricity consumed by Band A customers, tensions arose as tariffs surged from N68/kWh to N255/kWh for this category. However, other customer bands retained their previous tariff rates.
Minister Adelabu has now shed light on possible conditions for a tariff reduction, particularly emphasising the impact of the exchange rate. He stated, “The tariff is flexible. I can tell you if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff.” He further added that under such circumstances, even Band A tariffs could drop below the current N255/kWh.
Adelabu emphasised the variable factors influencing tariff composition and assured that these factors are not overlooked.
The minister’s remarks come amid ongoing discussions regarding the affordability and accessibility of electricity in Nigeria, with exchange rate fluctuations playing a significant role in tariff adjustments.
