The Minister of Power, Adebayo Adelabu, stated that the recent increase in electricity tariffs is only temporary. He expressed optimism that the tariffs would be reduced in the future.
Adelabu made this announcement on Friday during a sectoral briefing by ministers in Abuja.
It should be noted that on April 3, the Nigerian Electricity Regulatory Commission (NERC) implemented a 240% tariff increase for Band A customers, who receive 20-24 hours of power supply daily.
Following demands from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) for a reversal, the Commission reduced the tariff by N18.
However, the Organised Labour remained dissatisfied and threatened to go on strike.
Adelabu explained that the tariff increase for Band A customers is a temporary measure until the power sector’s output improves. He compared this situation to the initial high prices in the telecommunications sector, which eventually decreased over time.
“The electricity tariff might look expensive at the moment. But I’m optimistic that these tariffs will go down. We know how much we were buying SIM cards when the telcos just came. We know how much we were buying telephones.
“But gradually, as we scale up in generation, transmission and distribution, these prices will also decrease. It’s a temporary hardship leading to a permanent gain,” Adelabu said.
In April, a report revealed that the Socio-Economic Rights and Accountability Project announced it was suing President Bola Tinubu’s administration over the arbitrary increase in electricity tariffs.
The report also disclosed that the Nigerian government had approved a tariff increase to N225 ($0.15) per kilowatt-hour for Band A electricity consumers, who receive 20 hours of electricity per day.
Musliu Oseni, the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), announced at a press briefing in Abuja on Wednesday that this increase would result in customers paying N225 instead of the current N66 per kilowatt-hour.
