“Electric Bill Hikes Hit Households Again: What You Need to Know”

Babatunji Wusu –

The Nigerian government is considering another electricity tariff hike, potentially set for October 2024, as monthly power subsidies have surged to N181.63 billion in September. This increase marks a significant rise from N102.30 billion in May, with government payments totaling N163.87 billion in July and N173.88 billion in August.

This situation follows the Nigerian Electricity Regulatory Commission’s (NERC) announcement on April 3, 2024, regarding the removal of subsidies in areas classified as Band A feeders. At that time, the monthly subsidy was reported at N140.7 billion. NERC subsequently approved a tariff increase for consumers receiving at least 20 hours of electricity daily, raising their rates to N225 per kilowatt-hour.

The decision to increase tariffs has sparked widespread protests from various sectors, including labor unions, educational institutions, and health organizations, all of which have seen their electricity bills triple following the subsidy removal.