The Minister of Power, Adebayo Adelabu, says there would likely be a reduction in the electricity tariff for category A consumers if the exchange rate falls below N1,000 to a dollar.
This was disclosed by Adedibu during a live appearance on Channels TV on Thursday.
Nigeria’s Electricity Regulatory Commission recently increased electricity tariff by 231 per cent for category A consumers.
The new Multi-Year Tariff Order raised electricity rates for about two million customers from N68 per kilowatt to N255 per kilowatt.
The Minister replied to questions on the programme and said that the amount paid by Band customers remains at a lower level than what is spent on fuel.
Adedibu said “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.”
He said the problem the power sector is facing now is a result of neglect for over 50 years, and can’t 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 pointed out that efforts are being made for the upgrade of customers on other bands to Band A as power generation improves.
This decision by the Federal Government to remove subsidy on electricity tariff payable by power consumers, particularly in the Band A category has continued to generate controversies.
