The Nigerian Electricity Regulatory Commission (NERC) has announced a significant reduction in electricity tariffs for Band “A” customers for the month of May 2024, according to a recent statement from the regulatory body. This adjustment sees tariffs dropping from NGN 225 per kWh to NGN 206.8 per kWh, a move influenced by the appreciation of the Nigerian currency and adjustments in macroeconomic parameters.

This revision comes after a sharp increase last month when tariffs for the same customer band rose from NGN 68 per kWh to NGN 225 per kWh, which had marked a steep escalation in costs for consumers. Band “A” customers, who benefit from 20 to 24 hours of electricity supply daily, represent approximately 15% of total electricity consumers in the nation.

The decision to lower the tariffs was guided by changes in several economic indicators, including a notable appreciation in the exchange rates. “The Commission has taken into account the prevailing macroeconomic conditions and the effects on the electricity supply industry,” stated NERC in their release.

NERC emphasized its ongoing commitment to fostering a regulatory environment that balances the needs of consumers with the sustainability of the electricity supply industry. This tariff revision is part of ongoing efforts to adapt to economic dynamics while ensuring the stability and growth of the energy sector in Nigeria.

Electricity distribution companies across the country have been directed to apply this new tariff order immediately, to alleviate some of the financial burdens on consumers and maintain fairness in billing practices across the service bands. Band A customers are those typically receiving the most consistent power supply, with lower bands experiencing progressively lesser hours of electricity daily.

This tariff reduction is expected to be a welcome change for many, providing some relief from the previous month’s hike and reflecting NERC’s responsiveness to economic trends and consumer impact.