The Minister of Power, Mr Adebayo Adelabu, has said that the amount paid by electricity consumers on Band A will decrease if the exchange rate falls below N1,000 to a dollar.
During his appearance on Channels Television’s Politics Today, Adelabu made the following statement on Thursday.
Recently, the Nigerian Electricity Regulatory Commission made an important announcement regarding the subsidy for Band A customers’ electricity consumption. Starting from April 3, the Federal Government will no longer be providing this subsidy.
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Band A customers now face a significant increase in their electricity tariffs, with rates rising from N68/kWh to N255/kWh. Meanwhile, other customers continue to pay the same old tariffs.
Did you know that 1 kWh represents the energy consumed by a 1,000-watt appliance running for an entire hour? It’s quite fascinating!
As an illustration, if a 100-watt light bulb is used for 10 hours, it would use up 1 kWh of energy.
Addressing inquiries during the programme, the minister emphasised that the cost borne by Band customers remains lower than the expenditure on fuel.
“The tariff is flexible. I can tell you if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff; and the tariff, even for Band A, will come down below the N225/KWh that we are currently charging.
“There are variable factors that go into the composition of the tariff, and we are not closing our eyes to it. We are publishing it, we are transparent, we are talking to Nigerians and all the power sector stakeholders. This administration is very serious, and we are committed to transforming the sector,” Adelabu declared.
He stated that the ongoing issues in the power sector have been building up for more than five decades, emphasising that a resolution cannot be expected within a single year.
“The problem we are having is an accumulated problem of over 50 years. It will not disappear in one year, but we’ve been making consistent and gradual progress,” he added.
The minister emphasised the ongoing efforts to enhance customer upgrades to Band A as power generation improves over the next six months.
The recent electricity hike implemented by the President Bola Tinubu administration has faced significant backlash, with various groups and individuals demanding a reversal of the decision.
