The N225 Kilowatt-Hour being paid by electricity consumers on Band A will reduce if the exchange rate falls below N1,000 to a dollar, the Minister of Power, Adebayo Adelabu, said.
Adelabu disclosed this on Thursday while he appeared on Channel Television’s Politics Today.
Recall that the on April 3, the Federal Government, through the Nigerian Electricity Regulatory Commission, announced that subsidy would no longer be paid on the electricity consumed by Band A customers.
From N68/kWh Band A customers now pay N255/KWh, while other maintain the old tariffs.
1 kWh is the amount of energy that could be used if a 1,000-watt appliance is kept running for an hour. For example, a 100-watt light bulb operating for 10 hours would consume 1 kWh.
Answering questions on the programme, the minister stated that the amount being paid by the Band customers is still cheaper than the amount being spent on fuel.
“The tariff is flexible. I can tell you, if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff; and the tariff, even for Band A, will come down below the N225/KWh that we are currently charging.
“There are variable factors that go into composition of the tariff and we are not closing our eyes to it. We are publishing it, we are transparent, we are talking to Nigerians and all the power sector stakeholders. This administration is very serious and we are committed to transforming the sector,” Adelabu declared.
He said the current problems in the power sector had accumulated for over 50 years, saying it could not be resolved in a year’s time.
“The problem we are having is an accumulated problem of over 50 years, it will not disappear in one year, but we’ve been making consistent and gradual progress,” he added.
The minister stressed that efforts are ongoing to upgrade customers on other bands to Band A as power generation improves in the next six months.
The President Bola Tinubu administration has come under heavy criticisms for the recent electricity hike as groups and individuals called for reversal of the decision.
