FG Plans Electricity Tariff Increase For Non-Band A Customers to Boost Power Sector Liquidity

FG Plans Electricity Tariff Increase For Non-Band A Customers to Boost Power Sector Liquidity

The Federal Government has announced plans to raise electricity tariffs for customers outside the Band-A category to improve the financial stability of the Nigerian Electricity Supply Industry (NESI).

The proposed adjustment aims to align tariffs for other customer groups more closely with the N206/kW rate currently paid by Band-A consumers, who account for approximately two million electricity users.

Speaking at the public presentation of the National Integrated Electricity Policy (NIEP) and the Nigeria Integrated Resource Plan (NIRP) in Abuja, the Minister of Power, Chief Adebayo Adelabu, stated that the government could no longer sustain the N3 trillion subsidy on the power sector.

Adelabu highlighted that with power generation and distribution increasing by about 35% in 2024, ensuring the commercial viability of the industry is essential for continued growth and stability.