The Federal Government has decided to increase electricity tariffs for Band A customers, which is expected to save them about N1.5 trillion this year. Additionally, they plan to install around 2.5 million meters across the country to ensure accurate billing.
Previously, the government had announced plans to remove electricity subsidies for 15% of power consumers, which was estimated to save about N1.1 trillion annually. However, with the recent tariff adjustment, the savings are expected to increase to N1.5 trillion.
The government also mentioned that power distribution companies (Discos) would face penalties if they fail to provide at least 20 hours of power supply to Band A consumers.
Despite these measures, there has been opposition from manufacturers and organized labor against the tariff hike. The increase affects approximately 1.9 million consumers, who will now pay N225 per kilowatt-hour, a significant rise from the previous rate of N68/kWh.
To address the issue of metering, the Federal Government launched the Presidential Meter Initiative, aiming to install 2 to 2.5 million meters annually for the next five years. Currently, out of over 12 million registered electricity customers, only about 5.7 million have meters, leaving many consumers subject to estimated billing.
The Minister of Power, Adebayo Adelabu, emphasized the importance of closing this metering gap to ensure transparency and fairness in billing. The initiative aims to eliminate estimated billing by the end of 2024 and close the gap within three to five years.
