The Nigerian Electricity Regulatory Commission (NERC) recently raised electricity prices from ₦68 to ₦225 per kilowatt hour for ‘band A’ customers. NERC claims band A customers receive at least 20 hours of electricity daily, prompting concerns about the affordability of this essential service. Nigeria’s power minister has emphasized the pressing need for tariff adjustments to reflect the cost of providing electricity. The sharp increase in electricity tariffs continues burdening ordinary citizens, pushing their financial constraints to breakpoints. The new electricity tariff is coming when households face soaring bills that exceed their monthly incomes and an inflation rate of over 33 per cent.
The implications of this tariff adjustment extend far beyond individual households, impacting businesses, industries, and the broader economy. As electricity bills shoot up, businesses face mounting operational costs. Ultimately, the financial effect is passed on to consumers as higher prices for goods and services.
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