WRITE: CHIOMA MADONNA NDUKWU
The Nigerian government, through the Nigerian Electricity Regulatory Commission (NERC), has sanctioned a significant 300% increase in electricity tariffs for Band A consumers.
This decision, effective from April 1, 2024, allows power distribution companies to raise prices to N225 per kilowatt-hour from the previous N68 for urban consumers. Despite affecting only 15% of electricity customers, who consume 40% of the nation’s electricity, the move aims to attract investment and reduce the substantial annual expenditure on electricity subsidies, which stands at $2.3 billion.
Additionally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced an increase in the price of natural gas, further impacting electricity generation costs. These measures, part of Nigeria’s strategy to achieve financial sustainability and appeal to investors, come amidst economic challenges facing the country.
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