The Nigerian Electricity Regulatory Commission, NERC, has approved a new cost-reflective tariff increase for the electricity distribution companies in Nigeria.
The Chairman of NERC, Sanusi Garba, who disclosed this to journalists in Abuja on Wednesday, said the Multi-Year Tariff Order for DisCos takes effect from January 1, 2024.
He explained that the federal government would spend 30 billion monthly, amounting to N1.6 trillion, on electricity subsidies in 2024.
“If we have determined that you should be paying N150 and the Federal Government says you should pay N60, it will pay the difference. Then that is what it is, and the government would now provide the money.
“One of the new things in tariff order is, to avoid rate shock; we will now be doing the minor tariff review very frequently, like every month.
“Enugu Electricity Distribution Company, EEDC, will get N128.92bn, Abuja Electricity Distribution Company (N223.26 billion), Yola Electricity Distribution Company (N64.48 billion), Benin Electricity Distribution Company (N140.85 billion), Ibadan Electricity Distribution Company (N199.841 billion), the Eko Electricity Distribution Company (N198.78 billion) and Ikeja Electricity Distribution (N238.201 billion),” he said.
NERC stated that monthly electricity tariff adjustments would be made to avoid rate hike shock.
Please remember that the Minister of Power, Adebayo Adelabu said the federal government spent N700 billion on electricity tariffs in 2023.
“We’re reviewing the implementation of a cost-reflective tariff while ensuring continued government subsidy for vulnerable members of society,” Adelabu said.
