Minister of Power, Adebayo Adelabu, addressed the uproar surrounding the electricity tariff increase for Band A customers, attributing it to those who had previously avoided paying their electricity bills,Daily Trust reports.
Speaking at the 8th Africa Energy Marketplace forum in Abuja on Thursday, Adelabu emphasized that the new tariff had resulted in a 30 to 40 percent reduction in energy costs for consumers in this band. He dismissed assertions that the tariff hike had inflated production costs for manufacturers, consequently driving up prices of goods and services.
Adelabu clarified, “The electricity tariff aims not to exacerbate the economic challenges faced by Nigerians amidst high inflation and devaluation of the naira but to alleviate hardship.” He urged Band A consumers to evaluate their energy expenses comprehensively, taking into account savings from reduced reliance on generators and fuel procurement.
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Regarding concerns that the tariff adjustment would escalate production costs, Adelabu countered, “Manufacturers under Band A should be experiencing lower energy costs, thereby reducing production expenses. Any perceived increase in production costs can be attributed to those who previously evaded electricity payments.”
Expressing frustration over Nigeria’s persistent energy deficit despite abundant natural resources, Adelabu underscored the need for the sector to rectify its shortcomings spanning the past six decades.
Dr. Kevin K. Kariuki, Vice President of the African Development Bank’s Power, Energy, Climate Change, and Green Growth Complex, announced plans to bolster Nigeria’s power sector with a $1 billion support fund. This funding, earmarked for a policy-based operation (PBO) with a substantial energy component, aims to bolster ongoing reforms in line with the new Electricity Act. Kariuki affirmed the bank’s commitment to financing policy recommendations to realize the desired outcomes outlined in the National Integrated Electricity Policy and Strategic Implementation Plan.
