Minister of Power, Adebayo Adelabu has hinted on the possibility of a reduction in the electricity tariffs being paid by Nigerians, especially Band A customers.
Adelabu said this on Thursday, April 12, during an interview with ChannelsTV.
Recall that on April 3, the Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), announced that subsidy would no longer be paid on the electricity consumed by Band A customers.
Sequel to the new directive, Band A customers now pay N255/KWh compared to the N68/kWh prior as, while others maintain the old tariffs.
Responding to questions on the programme, the minister stated that the amount being paid by the Band customers is still cheaper than the amount being spent 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,” Adelabu said.
“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,” he added.
According to him, the current problems in the power sector had accumulated for over 50 years, saying it could not be resolved in a 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 stressed that efforts are ongoing to upgrade customers on other bands to Band A as power generation improves in the next six months.
Meanwhile, electricity generation in Nigeria experienced a significant decline to 2,775 megawatts (MW) on Thursday.
This marks a notable 32.3% decrease from the 4,099.87MW recorded the previous week, according to data released by the Nigeria Electricity System Operator (NESO), a Transmission Company of Nigeria (TCN) unit.
Despite recent adjustments to the billing of Band A power consumers, the power value chain has remained the same. Factors contributing to this stagnation include insufficient gas supply to thermal stations and the deteriorating condition of transmission lines.
Since the beginning of the year, electricity generation has averaged around 4,200 megawatts.
According to information from the Independent System Operator (ISO), load allocation to the eleven Distribution Companies (DISCOs) stood at 2,775.00 megawatts as of 6 pm on Thursday.
Notably, Abuja Disco received the highest allocation at 428MW, followed by Ikeja Electric at 422MW, Eko Disco at 359MW, Ibadan Disco at 335MW, Benin Disco at 227MW, and Enugu Disco at 200MW. Conversely, Yola Disco received the lowest allocation at 79MW, with Jos Disco at 158MW, Kaduna Disco at 181MW, Kano Disco at 188MW, and Port Harcourt Disco at 198MW.
Experts say the disparity in distribution highlights the insufficiency of electricity supply to meet the demands of households and organizations across the nation.
Consequently, some DISCOs have resorted to load shedding to manage the limited electricity supply, rotating power outages to various areas at different times.
