Electricity Tariff Could Decrease with Further Naira Rebound, Says Adelabu

Minister of Power, Adebayo Adelabu, discussed potential reductions in electricity tariffs during his appearance on Channel Television’s Politics Today. He indicated that the N225 per Kilowatt-Hour paid by Band A consumers could decrease if the exchange rate improves to below N1,000 to a dollar. This statement follows the Federal Government’s recent decision, announced through the Nigerian Electricity Regulatory Commission, to cease subsidies for Band A customers starting April 3. Consequently, Band A consumers now pay N255/KWh, while other tariff structures remain unchanged. Adelabu emphasized that despite the adjustments, the current rates for Band A customers remain comparatively lower than expenses incurred on fuel. He suggested that as the naira strengthens and the exchange rate improves, electricity tariffs, including for Band A, could potentially decrease below the current N225/KWh.