The report, presented at a stakeholders’ dialogue organized by Agora Policy in Abuja, highlights the deepening cost-of-living crisis despite the administration’s efforts to stabilize the macroeconomy.

The Poverty Surge and Palliative Cushion

Presenting the findings, Dr. Mohammed Shuaibu of the University of Abuja noted that the immediate aftermath of the reforms saw the national poverty headcount climb from a baseline of approximately 50% to a staggering 63%.

However, the report indicates that the introduction of social protection measures, such as the direct cash transfer program, helped moderate these figures. Following the deployment of these “safety nets,” the poverty rate reportedly eased to 56.2%.

“While social transfers helped cushion the impact, especially for low-income households, the initial shock triggered a sharp erosion of purchasing power across the board,” Shuaibu stated.

Consumption Slump and Household Sacrifice

The analysis paints a grim picture of household welfare, showing a significant decline in consumption levels.

The study found that high-income households remained largely insulated from the reforms, while low-income families bore the brunt of inflationary pressures.

Qualitative data from focus group discussions across Nigeria’s six geopolitical zones revealed that many families have resorted to drastic coping strategies.

These include:

• Reducing food consumption and rationing essential supplies.
• Walking long distances to avoid surging public transport fares.
• Borrowing to survive, leading to increased household debt.

Fiscal Gains vs. Social Cost

Despite the social hardship, the report acknowledged the fiscal necessity of the reforms. Data provided by the Central Bank of Nigeria (CBN) during the dialogue estimated that the previous fuel subsidy regime and foreign exchange distortions cost the Nigerian economy roughly 6% of its Gross Domestic Product (GDP).

Dr. Muhammad Abdullahi, deputy governor of the CBN for Economic Policy, emphasized that the situation had become unsustainable prior to the current administration’s intervention.

Business and Industry Impact

For the private sector, the report noted that the removal of the petrol subsidy had a contractionary effect on firm investments.

Business owners reported significant increases in operational and logistics costs, forcing many small and medium-sized enterprises (SMEs) to downsize or shut down operations entirely.

Stakeholders at the dialogue urged the government to expand and accelerate the implementation of social safety nets to prevent a further slide into poverty, particularly as the World Bank and PwC project that the absolute number of Nigerians living in poverty could remain elevated through 2026 without more targeted interventions.

As Nigeria pivots toward a market-driven energy sector, the resulting inflationary pressure continues to squeeze disposable income.

For the digital economy, this trend suggests a potential slowdown in consumer tech spending, even as the government seeks to reinvest subsidy savings into critical infrastructure and digital transformation initiatives.

The post Nigeria’s Poverty Headcount Surges to 63% appeared first on Tech | Business | Economy.

NERC, the regulatory body with authority for the regulation of the electric power industry in Nigeria, therefore issued regulations on the procedure for tariff reviews.

The latest order, signed by Sanusi Garba, NERC chairman, stated that pursuant to the provisions of the Electricity Act 2023, the commission is obligated to review and approve a fair tariff to allow licensees to recover prudent costs and a reasonable return on capital invested in the business for the provision of electricity services.

It stated that Section 116(1) of the Act provides that activities in the generation, transmission, distribution, trading, supply, system operation, and electricity distribution franchising shall be subject to tariff regulation, saying Section 116(2) further provides for the commission to develop a tariff methodology that allows licensees operating efficiently to recover the full efficient costs of their business activities, plus a reasonable return on investments by shareholders.

“In exercise of the powers conferred in Section 116 of the Act, the commission has developed and adopted the Multi-Year Tariff Order Methodology as an incentive-based price regulation framework for the determination and projection of tariffs payable in the Nigerian Electricity Supply Industry,”

NERC stressed that the Multi-Year Tariff Order methodology provides for a major review of electricity tariffs every five years, during which all tariff assumptions are reviewed to ensure the industry’s viability and efficiency.

One year before the major tariff hike, the commission said it would issue a notice to all licensees about its intention while requesting them to submit applications for the review of tariffs supported with necessary documentation within 120 days of the notice.

“The commission shall, one year before the expiration of the major tariff review order in force or as may be considered necessary, issue a notice to all licensees about its intention to commence the process for a major review of the existing tariff. The notice shall be published in three national dailies and on the website of the commission.

“The Notice shall request for submission of applications for the review of tariffs supported with documentation that includes but not limited to audited financial statements, budgets, investment plans (in line with prevailing guidelines on Performance Improvement Plans), and proof of wide consultation with customers in the licensees’ service area concerning the proposed filing of the application for tariff review and any other information as deemed necessary by the commission,” the regulation stated.

The regulator said an initial review of the applications shall be completed and a consultation paper developed no later than 90 days after the deadline for the submission of the applications.

“The consultation paper developed by the commission shall outline the basis for the tariff review applications by the licensees including their proposals on capital investments, service improvements, new connections, loss reductions, reset of tariff assumptions if any, and possible impact on rates payable by the affected customers.

“The consultation paper shall be published on the commission’s website and public notices issued soliciting comments with a timeline of 21 days for submission by stakeholders. The commission shall within 90 days from the publication of the consultation paper review all comments and schedule and conclude a Rate Case Hearing, having regard to the stakeholders’ responses to the consultation paper,” the regulation stated.

It was stated that all comments and observations received from the public on the consultation paper and the Rate Case Hearing shall be examined and considered in the development of a draft tariff order for the consideration of the commission.

Upon due consideration of the outcomes of the general stakeholders’ presentation and the Rate Case Hearing, the commission said it shall consider and approve a Major Tariff Review Order within 30 days from the date of the Rate Case Hearing held at the commission.

“Any licensee whose tariffs have been reviewed shall communicate the outcome of the tariff review to its customers vide its website and other communication channels,” it said.

For monthly or minor reviews, the commission said it shall review the prevailing operating end-user tariffs and changes may be made thereto to account for changes in generation fuel costs, the Nigerian and United States inflation rates, United States dollar exchange rate to the naira, and average generation availability relative to the preceding month.

The commission also stated that it may, at its discretion, conduct a minor review of end-user tariffs at other short periods but no longer than six months.

Earlier, the special adviser to President Bola Tinubu on Energy, Olu Verheijen, has said there would be an electricity tariff review in a few months.

Verheijen said the current N200bn monthly electricity subsidy benefits only the wealthiest 25 per cent, leaving the poor masses in the dark.

She said the government would put in place a subsidy system that works for the masses.

“Today, the Federal Government spends over N200bn per month on electricity subsidies, but much of this support benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance. To address this, the Federal Government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families,” she stated.

The post NERC Reacts to Electricity Tariff Hike Rumours appeared first on Tech | Business | Economy.

The operators said that over 65 per cent of private businesses, especially manufacturing sector and SMEs, may be forced to close down due to the high electricity tariff.

The Association called for the suspension of new tariff implementation to enable all stakeholders have meaningful dialogue around the process and method-ology of determining electricity tariff as well as jointly agreeing on the transparent mechanism re-quired for tariff setting.

It said Nigeria now ranks third after Germany and the United Kingdom on the list of countries with high electricity costs.

The Association, comprising top Business Membership Organisations (BMOs) Manufactures Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers’ Consultative Association (NECA), Nigerian Association of Small-Scale Industrialists (NASSI) and Nigerian Association of Small and Medium Enterprises (NASME) representing more than five million businesses in Nigeria stated this in a joint release.

It said that “the OPSN has received numerous complaints from its member-companies on the implications of the recent astronomical increase in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) for Band A customers without the required and proper consultations with the private sector.

“This sudden exponential in-crease in the face of inadequate electricity supply, is inimical to the competitiveness of Nigerian products and businesses and will definitely exacerbate the impact of high cost of production. Meanwhile, the astronomical increase is against the MYTO Order referenced NERC/2023/05, which valued the cost-reflective tariff at N114.8/Kwh (determined using exchange rate of N919.39/$1).

It also does not reflect the current exchange rate reality that has seen the naira appreciated by 62.95 percent over the dollar in the last one month.”

It explained:

“A closer look at the impact of increase in elec-tricity tariff to N225/kwh (determined using exchange rate of N1463.31/$1) on the cost profile of a medium sized company using 700 kw revealed that the firm will need to pay about N1.4 billion per annum for electricity. In China, a similar medium sized company will pay a little over N24 million.”

It added that:

“What is most worrisome with the Nigerian case is the fact that the electricity to be supplied is not adequate. Also, the increase is coming on the heels of macroeconomic instability, infrastructure deficits, as well as other supply side constraints limiting the performance of the productive sector.”

The post OPSN Calls for Suspension of New Electricity Tariff appeared first on Tech | Business | Economy.

It also stated that about 2.5 million meters would be installed this year in a bid to bridge the metering gap across the country and ensure consumers pay the right amount for electricity.

On April 2, 2024, Bayo Onanuga, the special adviser to the President on Information and Strategy, stated that the move by government to withdraw electricity subsidy from 15 per cent of power consumers in Nigeria would save the government about N1.1tn annually.

Onanuga had said the President Bola Tinubu-led administration was poised to allow the price hike in electricity given its N450bn budget for energy subsidies in 2024. ⁣

But in a document on issues around the tariff hike, from the Federal Ministry of Power on Wednesday, which was made available by the media aide to the power minister, Bolaji Tunji, the government said it would save N1.5tn with the recent tariff adjustment.

It said, “FG (Federal Government) to save N1.5tn with tariff adjustment. FG still subsidising Bands below A. Pricing change will help improve liquidity to the NESI (Nigeria Electricity Supply Industry).

“Discos (power distribution companies) will be sanctioned for supplying less than 20 hours to Band A consumers.”

Last week, manufacturers and the organised labour had kicked against the hike in tariff payable by about 1.9 million consumers, which was approved and announced by the Federal Government on April 3, 2024.

Subsidy on electricity was withdrawn completely from the tariff of consumers on the Band A category, which constitute about 15 per cent of the total 12.82 million power consumers across the country.

The government announced the hike in electricity tariff at a press briefing in Abuja by the Nigeria Electricity Regulatory Commission, adding that those affected would pay N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 per cent increase.

The government stated that the decision took effect on April 3, 2024, adding that Band A customers would enjoy up to 20 hours of power supply daily. However, there were several oppositions against the increase in tariff.

Meanwhile, the power ministry stated on Wednesday that the target of the Federal Government was to meter about 2.5 million unmetered power users across the country annually.

“The Presidential Meter Initiative aims to install a minimum of 2 – 2.5 million meters yearly within the next five years,” it stated.

A September 2023 report by NERC showed that out of the total 12,825,005 registered electricity customers in Nigeria, only 5,707,838 had meters, indicating that over 7.1 million registered customers were still subjected to the estimated billing system.

To close this gap, the Federal Government established the Presidential Metering Initiative, which was announced by Adebayo Adelabu, the minister of Power, at a briefing in Abuja.

Adelabu had put the metering shortfall at about eight million, but stressed that the Federal Government was committed to eliminating estimated billing by the end of 2024 and close the gap within the space of three to five years, through the new initiative.

“Citizens are tired of estimated billing because it always leads to cheating between consumers, staff and company. Before the end of this year, we are looking at the possibility of ending estimated billing because we want transparency and objectivity in our billing system.

“We have up to eight million metering gap in Nigeria and what the initiative seeks to achieve is to close this gap within three to five years. This means that an average of two million meters are required on a yearly basis and achieving the target is compulsory for citizens to enjoy stable power supply,” the minister had stated at a briefing in Abuja (Source).

The post Nigeria to Save N1.5tn from Electricity Tariff Increase appeared first on Tech | Business | Economy.

He said that less than five percent of those in the Band actually get 20 hours of electricity supply.

He laid his mind bare on the metering problem among other germane issue.

Of the tremendous snippet garnered from his thought provoking insight was a rhetorical question; “Is there a mechanism put in place by the Commission on how they can be measured?

They are talking of going to feeders. Do consumers know what feeders are? Do consumers have access to the feeders?

Background

Some days back, the Federal Government of Nigeria jacked up the electricity tariff at a press briefing in Abuja, Musliu Oseni, the vice chairman of NERC, said the increase will see customers pay ₦225 kilowatts per hour, up from ₦66.

Oseni said these customers represent 15 per cent of the 12 million electricity customers in the country.

He added that the commission had also downgraded some customers on Band A to Band B due to non-fulfillment of the required hours of electricity provided by the electricity distribution company.

He said: “We currently have 800 feeders that are categorized as Band A, but it will now be reduced to under 500. This means that 17 percent now qualify as Band-A feeders. These feeders only service 15 per cent of total electricity customers connected to the feeders.

“The commission has issued an order which is titled April supplementary order and the commission allows a 235 kilowatt per hour.”

He noted that the review will not affect customers on the other Bands.

A feeder is a conductor which connects the sub-stations (or localized generating station) to the area where power is to be distributed. Generally, no tapings are taken from feeders so that current in it remains the same throughout.

The report also showed, in Lagos State for instance, subscribers of the Band A tariff plan who benefit from the 20 to 24 hours of daily power consumption from the Ikeja Electricity Distribution Company (Ikeja Electric) and the Eko Electricity Distribution Company (EKEDC).

They are:

Ijaiye (11-IJUINJ-T1-Ajuwon) in Abule-Egba Business Unit enjoys 601KW/h , Hiltop (11-HilltopINJ-T1-Hilltop) in Akowonjo Business Unit enjoys 656KW/h. Egbeda (33-AlimoshoTCN-Agege) in Akowonjo Business Unit enjoys 425KW/h, Adekunle Fajuyi (Adekunle FajuyiINJ-T1-Isaac John) in Ikeja Business Unit enjoys 1,195KW/h,  Adekunle Fajuyi (Adekunle FajuyiINJ-T1-Oduduwa) in Ikeja Business Unit enjoys 1,104KW/h, Adeniyi Jones (Adeniyi JonesINJ-T1-Adeniyi Jones) in Ikeja Business Unit enjoys 1,117KW/h

Others are: Ilupeju (11-ILUPEJUINJ-T1-BHOJSON) in Ikeja Business Unit enjoys 1,619KW/h , Ilupeju (11-ILUPEJUINJ-T4-Ikorodu) in Ikeja Business Unit enjoys 997KW/h, Maryland (11-MarylandINJ-T1-PTC) in Ikeja Business Unit enjoys 1,152KW/h, New Alausa (11-New AlausaINJ-T4-Allen) in Ikeja Business Unit enjoys 1,085KW/h, New Alausa (11-New AlausaINJ-T4-Oregun) in Ikeja Business Unit enjoys 1,172KW/h,  New Alausa (11-New AlausaINJ-T4-Siyanbola) in Ikeja Business Unit enjoys 1,142KW/h, New Alausa (11-New AlausaINJ-T5-Kudirat) in Ikeja Business Unit enjoys 995KW/h, New Alausa (11-New AlausaINJ-T6-Awolowo) in Ikeja Business Unit enjoys 1,009KW/h,  New Alausa (11-New AlausaINJ-T6-Ogundana) in Ikeja Business Unit enjoys 1,067KW/h, Ojodu (OjoduINJ-T2-Express) in Ikeja Business Unit enjoys 960KW/h, Ojodu (OjoduINJ-T2-River Valley) in Ikeja Business Unit enjoys 997KW/h,  Opebi (11-PTCINJ-T1-Opebi) in Ikeja Business Unit enjoys 971KW/h, Opebi (11-PTCINJ-T2-Awuse) in Ikeja Business Unit enjoys 1,232KW/h,  Opebi (11-PTCINJ-T3-General Hospital) in Ikeja Business Unit enjoys 1,176KW/h, Opebi (11-PTCINJ-T3-Oba Akinjobi) in Ikeja Business Unit enjoys 1,082KW/h,  Secretariat Estate (11-SecretariatINJ-T1-Estate) in Ikeja Business Unit enjoys 1,074KW/h Secretariat Estate (11-SecretariatINJ-T2-Agidingbi) in Ikeja Business Unit enjoys 1,007KW/h, Oshodi (11-AjaoINJ-T2-Sholanke) in Oshodi Business Unit enjoys 929KW/h,

Oshodi (11-ItireINJ-T2-Canal) in Oshodi Business Unit enjoys 733KW/h,  Oshodi (11-ItireINJ-T3-Ago) in Oshodi Business Unit enjoys 723KW/h, Oshodi (11-Oke AfaINJ-T1-LCHE) in Oshodi Business Unit enjoys 721KW/h,  Oshodi (11-ItireINJ-T3-Ago) in Oshodi Business Unit enjoys 723KW/h, Ejigbo (33-EjigboTCN-Agodo) in Oshodi Business Unit enjoys 890KW/h, Ejigbo (33-EjigboTCN-Egbe) in Oshodi Business Unit enjoys 905KW/h, 31. Ejigbo (33-EjigboTCN-Igando) in Oshodi Business Unit enjoys 1,352KW/h Ejigbo (33-EjigboTCN-Oke Afa 2) in Oshodi Business Unit enjoys 714KW/h and 64 others.

The issues

Speaking further, the National Secretary of the Network for Electricity Consumer Advocacy of Nigeria noted that in 2020-21, the Commission came up with what it called Service Based Tariff based on the principle of the more electricity that is supplied to business or household the more you pay.

“Now this led to the reclassification of electricity consumers’ tariff bands. We have band A: The consumers there would be supplied a minimum of 20 hours a day to pay at that rate; Band B 18 hours, Band C 12 hours, Band D 8 hours, and Band E 4 hours.

“We conducted a survey on Band A customers and we discovered that less than 5 per cent of those in that Band received 20hours. We discovered that some customers in 11 months never had 18 hours of electricity supply but they are on Band A”.

Meanwhile, the government and the power distribution companies (DISCos), have continued to complain of revenue shortfalls in the sector.

As at September 30, 2023, Nigeria’s metering gap stood at over 7 million- though reports suggests it could be more than that.

This is amid frequent grid collapse, which defied solutions.

A report by NERC shows that out of the total 12,825,005, registered electricity customers, only 5,707, 838 have meters, indicating that over 7.1 million registered customers still are subjected to the estimated billing system.

Although President Bola Ahmed Tinubu led administration recently established a Presidential Metering Initiative, which was announced by Adebayo Adelabu, minister of Power.

Similarly, a report by the International Energy Agency, the national grid collapse 46 times from 2017 to 2023, Nigerians endured more nationwide blackouts in 2023.

Nigeria was also thrown into darkness on Thursday 28th, March, 2024 following a collapse of the electricity grid controlled from Osogbo, Osun State, the development left virtually all franchise areas for Discos across the 36 states.

In the same vein the Federal Government of Nigeria, in its efforts to alleviate the recurring partial grid disturbance has established a committee to address the gas shortage in the power, according to Adebayo Adelabu, minister of power the committee comprises representatives from the two ministries, gas suppliers, the Nigeria Electricity Regulatory Commission (NERC), chain sector.

However, the Pan-Yoruba socio-cultural group Afenifere has condemned the recent hike in electricity tariff, asking President Bola Tinubu to compel the Ministry of Power to reverse the increase. Afenifere’s comment followed the Nigerian Electricity Distribution Company’s (NERC) electricity tariff hike for B and A users who enjoy at least 20 hours of power supply

“Tariff increase, whether you call it cost reflective tariff or whatever, is not the silver bullet that is needed in the market. Why tariff increase or reflection of cost in the market? We are dancing around the problem and our priorities have not been set right.

First, what is the percentage of customers in Band A that are metered? We have a huge metering gap. The meter is the revenue assurance tool in the business of electricity. Why do we have revenue shortfalls, huge subsidy they are talking about? Aggregate, technical and commercial losses are as high as 47 to 49 per cent. This means that for every N100 of electricity generated, transmitted and distributed, you are losing N47 to N49 and you are recovering the balance.

Zambia and Kenya Case Studies

In Zambia for instance, to guarantee revenue in the electricity sector, the meter is paramount.

If you meter 100per cent as it is done in Zambia, their ATC and C is 17 per cent. The solution to the liquidity in the market is the huge metering gap of over 7 million of unmetered customers which now leads to the inability of the Distribution Company to collect revenue.

You are not guaranteed your revenue. A customer complained he bought energy three days ago for ₦50, 000 for services not yet used. So, if you meter 100 per cent like is done in Zambia and Kenya, it will reduce revenue loss and shoot up your revenue collection. So, you cannot generate until distribution launches higher than generation to continue running around.

“In other words, until you can guarantee that what you generate you can distribute and get your money, we are not going to get there. And what will help you do that is the meter”, Eket said.

Electricity is a fundamental requirement for industrial and commercial activities. Without reliable power, businesses face operational difficulties, reducing productivity and competitiveness.

Lack of electricity also limits the establishment and growth of new industries, hindering job creation and economic growth. Electricity generation in Nigeria began in Lagos in 1886 with the use of generators to provide 60 kW.

In 1923, tin miners installed a 2 MW plant on the Kwali River; six years later, the Nigerian Electricity Supply Company, a private firm, was established near Jos to manage a hydroelectric plant at Kura to power the mining industry.

Then, another private enterprise was established in Sapele by United Africa Company to power the activities of the African Timber and Plywood Company.

Between 1886 and 1945, electric power generation was relatively low, with power provided primarily to Lagos and other commercial centers such as mining industries in Jos and Enugu. Hence, the colonial government created an electricity department within the Public Works Department, which then installed generating sets in many cities to serve government reservation areas and commercial centers.

In 1950, the Legislative Council of Nigeria began moves to integrate the electricity industry when it enacted a law to establish the Electricity Corporation of Nigeria (ECN) with the duties of developing and supplying electricity.

ECN took over the electricity sector activities within PWD and the generating sets of Native Authorities.

In 1951, the firm managed 46 MW of electricity.

Between 1952 and 1960, the firm established coal-powered turbines at Oji and Ijora, Lagos. In 1961, ECN completed a 132 kV transmission line linking Lagos to Ibadan via Shagamu; in 1965, this line was extended to Oshogbo, Benin, and Ughelli to form the Western System.

In 1962, a statutory organization, the Niger Dams Authority (NDA), was formed to build and maintain dams along River Niger and Kaduna River, NDA went on to commission a 320 MW hydropower plant at Kainji in 1969, with the power generated sold to ECN. In 1972 NDA and ECN merged to form the National Electric Power Authority (NEPA).

NEPA was the major electricity firm in Nigeria until power sector reforms resulted in the creation of the Power Holding Company of Nigeria (PHCN) and later the privatization of electricity generation and distribution, the rest they say is history.

Way Out

Now, power generation, transmission, and distribution are the three processes of delivering electricity to consumers in residential, industrial, and commercial areas

Corruption and mismanagement of funds in the power sector, vandalism of oil and gas pipelines and exploration facilities, inability of the government to partner with multinational oil companies to fully utilize gas, poorly planned maintenance culture, and indebtedness on the part of consumers affect electricity generation, transmission, and distribution in Nigeria. These must be tackled adequately.

The investor deserves return on investment (ROI), likewise the government should not be denied its revenue (taxes), but the customer who pays the bill deserves absolute service.

Therefore, we align ourselves with the study which recommended among others that the government should support the electricity distribution firms to generate more megawatts in order to provide constant power supply to their numerous customers and provide adequate facilities like transformers, switch box, switch gears, wire cables, meters, and circuit breakers in order to supply regular power to Nigeria, no matter the Band the citizen belongs.

The post Hike in Electricity Tariff: NERC, DisCos and the Customer’s Unanswered Questions appeared first on Tech | Business | Economy.

During a press briefing in Abuja on Wednesday, Musliu Oseni, the vice chairman of NERC, announced that there will be a rise in electricity tariffs.

This adjustment will result in customers paying N225 per kilowatt-hour, up from the current rate of N66, which represents approximately 241% increase.

“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 percent now qualify as Band A feeders. These feeders only service 15 percent of total electricity customers connected to the feeders.

“The commission has issued an order which is titled April supplementary order and the commission allows a 235 kilowatt per hour.”

Recall that Bloomberg, a frontline Media outfit, had reported Nigerian government’s plans to increase electricity tariff by “not less than 300%”.

According to the news agency, “Nigerians will now have to pay $2.42 per one million British thermal units from the previous rate of $2.18 MMBtu.”

The world respected media platform, quoted people in the presidency with knowledge of the matter saying the  increase in electricity tariff was in a bid to attract new investment and slash about $2.3 billion spent to cap tariffs (subsidies).

Although. It noted that Power companies will be allowed to raise electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers this month citing sources, reported Tuesday.

It was learnt that these customers represent 15% of the population that the government says consume 40% of the nation’s electricity, the agency said.

This revelation is coming on the heels of Monday’s announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of an increase in the price of natural gas, which is used to generate more than 70% of electricity in Nigeria.

NMDPRA had set a new 2024 base gas price for companies in the power sector and commercial users. This was contained in a statement signed by Farouk Ahmed, the authority’s chief executive.

The post Nigeria Increases Electricity Tariff by 241% appeared first on Tech | Business | Economy.

The move comes after a proposed 40% increase in electricity tariffs, initially scheduled for implementation on July 1, was put on hold due to pressure from the Nigerian Labour Congress (NLC).

According to a statement released by NERC on Friday, the DisCos’ applications are based on the need to align electricity rates with the current macroeconomic dynamics.

The statement highlighted the specific provisions under Section 116 (1) and 2(a&b) of the Electricity Act 2023 that authorize the DisCos to file for a rate review.

“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations, and sustainability of the companies,” the statement explained.

In accordance with the rule-making process and the powers vested in the Commission by the Electricity Act, NERC will conduct a Rate Case Hearing to evaluate the applications before making a ruling.

The statement emphasized that interested parties wishing to participate in the proceedings as intervenors must submit their applications to tariff@nerc.gov.ng by the close of business on July 20, 2023.

In a call for transparency and public input, NERC invited members of the public and stakeholders to provide their comments on the rate review applications submitted by the DisCos.

The statement encouraged interested individuals to review the excerpts of the Rate Review Applications, which are accessible on the Commission’s website at www.nerc.gov.ng.

To facilitate public engagement, the Nigeria Electricity Regulatory Commission will conduct a rate case hearing and extend participation to interested members of the public.

This presents an opportunity for stakeholders to contribute their perspectives on the proposed electricity tariff review.

As the review process commences, the outcome will significantly impact electricity consumers across the country.

Stakeholders, both in the public and private sectors, are encouraged to stay informed about the proceedings and provide their valuable input to ensure a fair and balanced decision-making process regarding electricity tariffs.

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