ELECTRICITY RATES ARE PROJECTED TO RISE BY MORE THAN 40% BEGINNING JULY 1ST, ACCORDING TO STAKEHOLDERS.

Nigerians may need to brace themselves for harsher times as electricity tariffs are scheduled to rise by more than 40% in the coming days, potentially ending all types of energy subsidies in the country, according to The Guardian.

With a monthly subsidy of nearly N50 billion continuing in the electrical sector due to revenue shortage, the rate hike set to take effect on July 1 may be another litmus test for President Bola Ahmed Tinubu’s market reform.

The administration has already withdrawn PMS subsidies and floated the naira, which has hampered the price-setting of the NERC 2022 Multi-Year Tariff Order (MYTO).

NERC’s current Service Based Tariff was benchmarked on an exchange rate of N441/$ & inflation of 16.97% even though the stakeholders in the power sector have not been able to produce at least 5,000 megawatts annually after signing contracts with NERC.