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The recent tariff adjustments in electricity tariff for Band A customers to has earned Federal government more money.
Onanuga had said the President Bola Tinubu-led administration was poised to allow the price hike in electricity given its N450bn budget for energy subsidies in 2024.
But in a document on issues around the tariff hike, from the Federal Ministry of Power on Wednesday, which was made available by the media aide to the power minister, Bolaji Tunji, the government said it would save N1.5tn with the recent tariff adjustment.
It said, “FG (Federal Government) to save N1.5tn with tariff adjustment.
FG still subsidising Bands below A. Pricing change will help improve liquidity to the NESI (Nigeria Electricity Supply Industry).
“Discos (power distribution companies) will be sanctioned for supplying less than 20 hours to Band A consumers.”
Last week, manufacturers and the organised labour had kicked against the hike in tariff payable by about 1.9 million consumers, which was approved and announced by the Federal Government on April 3, 2024.
Subsidy on electricity was withdrawn completely from the tariff of consumers on the Band A category, which constitute about 15 per cent of the total 12.82 million power consumers across the country.
The government announced the hike in electricity tariff at a press briefing in Abuja by the Nigeria Electricity Regulatory Commission, adding that those affected would pay N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 per cent increase.
The government stated that the decision took effect on April 3, 2024, adding that Band A customers would enjoy up to 20 hours of power supply daily. However, there were several oppositions against the increase in tariff.
