Politics

Electricity Tariff Will Decrease Like SIM Cards and Phones Did – Adelabu

Published by admin on May 24th, 2024.

Electricity Tariff Will Decrease Like SIM Cards and Phones Did – Adelabu

Adebayo Adelabu, the Minister of Power, has stated that the recent increase in electricity tariffs is only a temporary measure. During a sectoral briefing on Friday in Abuja, he expressed optimism about a future reduction in tariffs.

On April 3, the Nigerian Electricity Regulatory Commission (NERC) announced a 240 percent hike in electricity tariffs for Band A customers, who receive 20-24 hours of power daily. Following protests from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), the Commission reduced the tariff by N18.

Despite this concession, the Organised Labour has threatened to strike. Adelabu explained that the current tariff increase is a temporary challenge until the power sector’s output improves. He compared the situation to the early days of the telecommunications sector when SIM cards and phones were initially expensive but eventually became more affordable.

“The electricity tariff might seem high now, but I’m confident it will decrease. Remember how expensive SIM cards and phones were when telecom companies first started? As we improve generation, transmission, and distribution, these prices will drop. This is a temporary hardship leading to long-term benefits,” Adelabu said.

In April, SaharaReporters covered the Socio-Economic Rights and Accountability Project’s decision to sue President Bola Tinubu’s administration over the arbitrary tariff increase. The government had approved a tariff increase to N225 ($0.15) per kilowatt-hour for Band A customers, who receive power for 20 hours daily. Musliu Oseni, Vice Chairman of NERC, announced that this increase would raise the rate from the current N66 per kilowatt-hour.