The Federal Government has given the green light to decrease the electricity tariff for Band A customers to N206.80/kwh, down from N225/kwh. Band A customers are those who receive a minimum of 20 hours of electricity supply daily.
Ikeja Electric, in a notice to its customers, announced the downward tariff revision, effective May 6, 2024. The revision ensures a guaranteed availability of 20-24 hours of supply daily for Band A consumers.
This move comes after the Nigerian Electricity Regulatory Commission (NERC) had previously increased the tariff for Band A customers from N68/KWh to N225/kWh. Band A customers, constituting only 15 percent of total electricity consumers, are entitled to between 20 and 24 hours of electricity supply daily.
However, despite the reduction in tariff, Band A customers will no longer benefit from government subsidies on electricity.
The decision to hike electricity tariff had sparked nationwide reactions. Human rights lawyer, Femi Falana (SAN), criticized the government, accusing it of acting in the interest of international financial institutions such as the International Monetary Fund (IMF) and the World Bank.
The Nigerian Bar Association (NBA), Ikeja branch, also condemned the tariff hike, giving the government and electricity distribution companies (DisCos) a seven-day ultimatum to revert to the old electricity tariff or face legal action.
Chairman of the branch, Mr. Seyi Olawunmi, described the increase as unreasonable and insensitive, not reflective of the current economic realities faced by Nigerians.