By Agbabuwe Precious
Nigeria’s electricity distribution companies (DisCos) have announced a tariff hike for Band A customers, effective July 1, 2024, despite ongoing protests by students. The new rate is N209.5/kWh, up from N206.80/kWh.
This latest increase follows a tumultuous few months for electricity pricing in Nigeria. In April, the Nigerian Electricity Regulatory Commission (NERC) ordered an immediate upward review of electricity tariffs, allowing DisCos to raise prices to N225 per kilowatt-hour from N68. However, following public outcry and a resolution by the House of Representatives, DisCos announced a tariff reduction in May, lowering the rate for Band A customers to N206.80/kWh from N225/kWh.
The latest upward review marks a return to the upward trend, with DisCos citing the need to reflect current economic realities. The tariff increase affects only Band A customers, who account for about 15% of electricity consumers, according to NERC. The rates for Bands B, C, D, and E remain unchanged.
The announcement was made by several Discos, including Port Harcourt Electricity Distribution Plc (PHED), Eko Electricity Distribution Company (EKED), Ikeja Electric, Kaduna Electricity Distribution Company (Kaduna Electric), and Ibadan Electricity Distribution Company (IBEDC), via statements on their social media handles on Wednesday, 3rd July, 2024.
The companies assured customers on their Band A feeders of a guaranteed minimum of 20 hours of electricity supply daily. The tariff hike comes amidst protests by students of the University of Benin and other schools over poor living conditions due to the prolonged outage of electricity on campuses, resulting from the inability for schools to pay the outrageous electricity bills. As of press time, the Benin Electricity Distribution Company (BEDC) has yet to make any changes.