Electricity Tariff: Minister Pledges Reduction If Exchange Rate Falls Below N1,000/$1

The Minister of Power, Adebayo Adelabu, addressed concerns about the recent electricity tariff hike, emphasizing the potential for reduction if the exchange rate improves.

Adelabu asserted during his appearance on Channel Television’s Politics Today, “The tariff is flexible. I can tell you, if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff.”

Highlighting the context, the Federal Government, through the Nigerian Electricity Regulatory Commission, announced on April 3 that subsidy would no longer be provided for Band A customers. Consequently, Band A consumers now pay N255/KWh, up from N68/KWh, while other bands maintain previous tariffs.

Adelabu defended the hike, stating that even with the increased tariff, electricity remains a more economical option compared to fuel. “The amount being paid by Band customers is still cheaper than the amount being spent on fuel,” he affirmed.

READ ALSO: New Electricity Tariff Hike Will Reduce Subsidy By 40% – NERC

Acknowledging the longstanding challenges in the power sector, Adelabu emphasized that solutions require time and consistent effort. “The problem we are having is an accumulated problem of over 50 years, it will not disappear in one year, but we’ve been making consistent and gradual progress,” he explained.

In response to criticisms, particularly from groups and individuals calling for a reversal of the decision, Adelabu reiterated the government’s commitment to transparency and dialogue with stakeholders. “We are publishing it, we are transparent, we are talking to Nigerians and all the power sector stakeholders. This administration is very serious and we are committed to transforming the sector,” he declared.

Looking ahead, the minister outlined plans to upgrade customers on other bands to Band A as power generation improves over the next six months, suggesting a potential expansion of benefits for consumers.

As discussions surrounding electricity tariffs continue to evolve, Adelabu’s statements provide insight into the government’s perspective and its efforts to navigate the complexities of the power sector while addressing the concerns of citizens and stakeholders alike.