• Tuesday, May 21, 2024
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Adelabu predicts Band A tariff will reduce when exchange rate falls below N1,000/$

FG, NSIA earmark N1.3trn funding for Presidential Metering Initiative

Minister of Power, Adebayo Adelabu has said that the N225 kilowatt-hour tariff for Band A electricity consumers could decrease if the exchange rate falls below N1,000 to a dollar.

Adelabu said this in an interview on Channels Television’s Politics Today,

This comes after the Federal Government, through the Nigerian Electricity Regulatory Commission, announced the end of subsidies for Band A customers, who now pay N255/KWh, while others maintain previous tariffs.

Adelabu emphasized that despite the hike, Band A rates remain cheaper than fuel costs and indicated that tariff adjustments are contingent on exchange rate fluctuations.

He acknowledged the longstanding challenges in the power sector, stating that progress requires time and effort, with plans to upgrade customers to Band A as power generation improves over the next six months.

However, the recent electricity hike has sparked criticism of the administration, with calls for a reversal of the decision.