The Minister of Power, Adebayo Adelabu, on Thursday, revealed that the N255 per kilowatt-hour rate paid by consumers in Band A could decrease if the exchange rate drops below N1,000 to a dollar.
Recall that the Nigerian Electricity Regulatory Commission announced on April 3, that the Federal Government would cease subsidizing electricity for Band A customers, leading to an increase from N68/kWh to N255/kWh. Rates for other bands remain unchanged.
Speaking during an appearance on Channel Television’s Politics Today, Adelabu mentioned that despite the rate increase, electricity is still a more cost-effective option compared to the expenses associated with fuel.
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“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 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 said the current problems in the power sector had accumulated for over 50 years, saying it could not be resolved in a year’s time.
“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.
