LAGOS , Nigeria (VOICE OF NAIJA)-Minister of Power, Adebayo Adelabu has hinted at a potential drop in the new electricity tariff for Band A consumers if the exchange rate falls below N1,000 to a dollar
Adelabu made this statement during his appearance on Channel Television’s Politics Today.
From N68/kWh Band A customers now pay N255/KWh, while others maintain the old tariffs.
The minister explained that 1 kWh represents the energy consumed by a 1,000-watt appliance running for one hour. For instance, a 100-watt light bulb used for 10 hours would consume 1 kWh.
Additionally, in response to program inquiries, the minister highlighted that the costs incurred by Band customers are comparatively lower than fuel expenses.
READ ALSO: Electricity Tariff Hike: FG Plans To Increase Other Bands— Falana
“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; and the tariff, even for Band A, will come down below the N225/KWh that we are currently charging.
“There are variable factors that go into the composition of the tariff and we are not closing our eyes to it. 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,” Adelabu declared.
He emphasised that the challenges in the power sector have been building up over the past 50 years and cannot be resolved within a year.
READ ALSO: Nigeria Gets $2.3bn Siemens Power Boost
“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 added.
The minister highlighted ongoing efforts to elevate customers from lower bands to Band A as power generation improves over the next six months.
The administration of President Bola Tinubu has faced criticism for the recent electricity price increase, with various groups and individuals urging a reversal of the decision.