The Nigeria Labour Congress, Trade Union Congress, and Organised Private Sector have criticized the recent hike in electricity tariffs for Band A customers. The Nigerian Electricity Regulatory Commission (NERC) raised tariffs again due to the depreciation of the naira against the dollar and rising inflation.
Several distribution companies, including Ibadan, Eko, and Kaduna Electricity Distribution Companies, announced the tariff increase from N206.80/kWh to N209.50/kWh. Despite concerns from customers, the companies claim this adjustment is necessary to cover rising operational costs and maintain high-quality electricity services.
The tariff hike has sparked complaints from customers, including manufacturers and public and private institutions, who find their monthly electricity bills increasingly unaffordable. Kaduna Electric confirmed the new tariffs took effect on July 1, 2024, assuring Band A customers of 20-24 hours of daily supply. Meanwhile, tariffs for Bands B, C, D, and E remain unchanged.
The increase in tariffs coincides with a rise in monthly electricity subsidies from N102.30 billion in May to N158.53 billion in June, driven by the naira’s depreciation and accelerating inflation. In April, NERC had already raised Band A tariffs to N225/kWh from N68, highlighting the financial pressures on the energy sector.
(PUNCH)