FG increases electricity tariff

Kunle Sanni

Federal Government has announced that starting from April 3, electricity tariff in the country will be increased.

The Chairman, Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba made the announcement during a press conference held in Abuja on Wednesday.

Garba explained that the purpose of the order is to ensure that consumers are charged a fair price, while investors can recover their operating costs.

Garba clarified that the federal government’s policy is to prevent consumers from paying a higher price than the previous rates, especially during the current cost-of-living crisis.

The tariff order, according to him, aims to establish prices that are sufficient to allow Distribution Companies (DisCos) to recover the efficient cost of operation, including a reasonable return on capital invested in the business.

He said the action is in accordance with section 116 of the Electricity Act 2023.

Garba further explained that the tariff order contains appropriate tariffs that DisCos should be charging to remain in business.

He said, “The rates are very clear and will ensure that DisCos can fully recover costs while being fair to customers.

The Vice Chairman, Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, the new rate will only be applicable to consumers who are 15 per cent of the population but consume 40 per cent of the nation’s electricity consumers.