Electricity Tariff Hike: Painful Implication You Probably Didn't Think of

It is now no news that the recent increase of electricity tariff by Distribution Companies (DisCos) affects only Band A costumers, according to the Nigerian Electricity Regulatory Commission (NERC).

What this new development means for the common Nigerian particularly and the entire population generally is something quite deserving of high interest.

Implication

The new 230.9% tariff increase affects only Band A customers, which are 15% of electricity customers. Recall that NERC had said in March 2024, that the number of electricity customers using prepaid meters Nigeria rose to 5,885, 687 (5.89 million) out of 13,231,807 registered electricity customers.

15% of this figure (5.89 million) is approximately 883,000. Now, imagine 883,000 customers (or at least 50% of them) are producers. This invariably means that the electricity costs of producers would increase by 230.9%. This, of course, means that there will be an increment in the prices of goods and services from these producers will natu…