NERC signals fresh electricity tariff hike, Nigerians face more economic pain

The Nigerian Electricity Regulatory Commission (NERC) has indicated it is reviewing electricity tariffs across all customer bands. The regulator said the proposed adjustment is aimed at improving service delivery and protecting consumer rights.

In a post on its X (formerly Twitter) account on Monday, NERC assured consumers that any tariff increase will come with better service. The commission stated: “We are bringing the electricity tariff closer to you to improve your quality of life, and we assure you of continued protection of your rights every day.”

The development has sparked concern among Nigerians already struggling with rising living costs, inflation, and unreliable power supply. Many households and businesses have not seen a commensurate improvement in electricity supply despite previous tariff hikes.

In April 2024, NERC raised tariffs for Band A customers from about N68 per kilowatt-hour (kWh) to over N225/kWh, a jump of more than 240%. Band A customers, who make up about 15% of all electricity users, are supposed to receive at least 20 hours of daily supply. However, after a slight reduction to N206.80/kWh in May, some distribution companies increased the rate again in July to around N209.50/kWh, while supply remained erratic.

Nigeria uses a band-based tariff system where customers pay based on the average daily hours of electricity they receive. Bands B, C, D, and E were exempted from the last review. But industry sources now suggest the regulator may widen the scope of the tariff review beyond Band A customers.

The expected adjustment will be carried out under the Multi-Year Tariff Order (MYTO) framework, which allows NERC to adjust prices based on inflation, exchange rates, and gas costs.

This latest signal comes as many Nigerians already face a higher cost of living, with food, transport, and housing prices climbing. Any additional electricity tariff increase will add to the burden on households and small businesses.