The Nigerian government has explained that the recent increase in electricity tariffs mainly affects a small, affluent portion of the population. Information Minister Mohammed Idris stated that 85% of Nigerians will still benefit from electricity subsidies despite the tariff adjustment.
The tariff hike primarily impacts Band A customers, who make up about 15% of electricity consumers and typically have reliable access to power. Minister Idris highlighted that this group received a disproportionate amount of the subsidy and enjoyed longer electricity availability, around 20 hours per day.
The government plans to reinvest the funds recovered from removing the subsidy, estimated at over N1 trillion, into enhancing the national grid and improving social services. Additionally, Minister Idris stated that the recently enacted Electricity Act empowers the Nigerian Electricity Regulatory Commission to enforce regulations and penalize electricity distribution companies for billing irregularities and inadequate service provision.
Source: Business Day