TCN’s Stance on Electricity Tariff Hike:
- Nigeria’s electricity tariff is still lower than neighboring African countries.
- Increased cost due to expensive power production.
- Factors influencing cost: exchange rates, generating costs.
Electricity Supply:
- Band A customers receive 20-22 hours of power daily.
- Stable power supply achievable within 5 years.
- Improvements in electricity supply over the last year.
Tariff Hike Criticism:
- Timing criticized due to economic hardships.
- Petrol subsidy removal exacerbates struggles.
- NERC raised tariff from N66 to N225/kWh for Band A customers.
The Transmission Company of Nigeria (TCN) is standing by its recent electricity tariff hike, saying Nigerians still pay less for energy compared to neighboring countries like Niger, Burkina Faso, and Senegal. According to TCN Managing Director Sule Abdulaziz, the increased cost is due to expensive power production, influenced by factors like exchange rates and generating costs .
Abdulaziz emphasized that Nigerians in the Band A category, who receive at least 20 hours of power daily, now enjoy nearly round-the-clock electricity, with 20 to 22 hours of supply . He’s optimistic about achieving stable power supply within the next five years, citing improvements in electricity supply over the last year .
However, the tariff hike, which took effect on April 3, 2024, has faced criticism due to its timing, with Nigerians struggling with economic hardships following the petrol subsidy removal . The Nigerian Electricity Regulatory Commission (NERC) raised electricity costs for Band A customers from N66 to N225 per kilowatt-hour .
It’s worth noting that NERC later reduced the electricity tariff for Band A customers from ₦225/kWh to ₦206.8/kWh, following a thorough examination of macroeconomic parameters and exchange rate increases .
