The Vice President of the Nigeria Electricity Regulatory Commission (NERC), Musiliu Oseni, has provided insights into the rationale behind the increase in electricity tariffs for Band A customers.
Oseni, speaking on Channels Television’s Politics Today on Wednesday, explained that the Commission is mandated by its Act to ensure that efficient operators recover sufficient revenue for their investments and operational costs while also generating returns.
He pointed out that the decision to increase tariffs was influenced by a decline in generation availability since January, stemming from a lack of tariff review. This decline affected the ability of Distribution Companies (DisCos) to pay for gas and maintenance, leading to a deterioration in service quality.
Oseni clarified that the tariff adjustment only affects Band A customers who receive approximately 20 hours of electricity daily. He noted that prior to the increase, the Band A category was reviewed downward from over 1000 feeders to 481, which serve about 15% of total electricity customers.
He emphasized that the tariff revision is necessary to ensure liquidity in the market and improve service quality. The Commission has issued an order titled April supplementary order, allowing for a tariff of ₦235 per kilowatt-hour.