By Milcah Tanimu

The Nigerian Electricity Regulatory Commission (NERC) has approved a significant increase in electricity tariff from N68 ($0.44) per kilowatt-hour to N225 ($0.15) per kilowatt-hour for urban consumers, effective from April 1, 2024. This represents a 300 percent hike in tariff. The Vice Chairman of NERC, Musiliu Oseni, announced this decision in Abuja. The increase will only impact 15 percent of electricity consumers in the country, specifically those classified under Band A, who consume 40 percent of the nation’s electricity. The Service-Based Tariff (SBT) scheme categorizes consumers into bands based on the number of hours of electricity supply per day, with Band A having a minimum of 20 hours of supply.