Why We Hiked Electricity Tariff – NERC

Vice chairman of the Nigeria Electricity Regulatory Commission (NERC), has said the reason why the electricity tariff was hiked.

Musiliu Oseni stated this during an interview on Channels TV’s Politics Today on Wednesday saying that the tariff was because generation companies could not pay for gas and maintain their machines.

On Wednesday, the commission approved the increase of electricity tariff for customers under the Band A classification.

With the development, customers would pay N225 kilowatt per hour from the current N66.

He said, “If you look at section 116 sub section 2A of the electricity act, it mandates the commission to ensure that the licenses operating efficiency are allowed to recover sufficient revenue for the capital invested and for the operational cost as well as having a return on the investments they have made.

“In that case, it means that the onus is on the commission to ensure that operators actually earn sufficient revenue that we incentivize further investments in order to ensure improvement in service delivery.

“What informed the decision apart from the provision of the act, in December 2023, there was an improvement in the quality of service down to January. From then on there was dearth in electricity availability. Lack of review of tariffs caused that.”