The Minister of Power, Adebayo Adelabu, has stated that the recent increase in electricity tariffs is temporary.
He expressed optimism that the electricity tariff will be reduced in the future.
Adelabu made this statement on Friday during a sectoral briefing in Abuja.
It should be noted that on April 3, the Nigerian Electricity Regulatory Commission (NERC) announced a 240 percent increase in electricity tariffs for Band A customers who receive 20-24 hours of power supply daily.
Following calls from the Nigeria Labour Congress (NUC) and the Trade Union Congress (TUC) for a reversal, the Commission reduced the tariff by N18.
However, the Organised Labour expressed dissatisfaction and threatened to go on strike.
Adelabu explained that the tariff hike for Band A customers is a temporary measure until the power sector output increases.
He likened the tariff situation to the initial price surge in the telecommunications sector, which eventually saw prices decrease over time.
“The electricity tariff might look expensive at the moment. But I’m optimistic that these tariffs will go down. We know how much we were buying SIM cards when the telcos just came. We know how much we were buying telephones.
“But gradually, as we scale up in generation, transmission and distribution, these prices will also decrease. It’s a temporary hardship leading to a permanent gain,” Adelabu said.
In April, a report disclosed that the Socio-Economic Rights and Accountability Project announced it was suing President Bola Tinubu’s administration over the arbitrary increase in electricity tariffs.
The report also revealed that the Nigerian government had approved a tariff increase to N225 ($0.15) per kilowatt-hour for Band A electricity consumers, who receive 20 hours of electricity supply per day.
Musliu Oseni, the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), announced at a press briefing in Abuja on Wednesday that the increase would raise the cost from N66 to N225 per kilowatt-hour for these customers.
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