The Minister of Power, Adebayo Adelabu, made a statement on Channels Television’s Politics Today program that the N225/kWh paid by Band A electricity consumers could decrease if the naira’s exchange rate falls below N1,000 to a dollar.
The Federal Government, through the Nigerian Electricity Regulatory Commission, announced on April 3 that there would be no more subsidies for electricity consumed by Band A customers, causing the price to rise from N68/kWh to N255/kWh.
The price increase affects only Band A customers, while others continue to pay the previous rates. The price for 1 kWh is the amount of energy used by a 1,000-watt appliance in an hour.
Adelabu explained that the tariff is adjustable and will decrease if the naira’s exchange rate improves. He also mentioned that the current problems in the power sector have been building for over 50 years and cannot be solved quickly.
The administration is working to upgrade customers to Band A as power generation improves in the next six months. The recent electricity price increase has been met with criticism from various groups and individuals who are demanding a reversal of the decision.
