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The proposed increase in electricity tariffs in Nigeria has been suspended for now, providing relief for power users. The tariff for power users on Band A, which was N68/kilowatt-hour, remained the same on July 1.
The suspension of the tariff hike was welcomed by traders and consumers who have been struggling with shrinking incomes and a slow economy.
However, there are concerns that the tariff may be raised quietly in the near future.
The Nigerian Electricity Regulatory Commission (NERC) confirmed that there would be no tariff increment at this time.
Distribution companies also stated that they would not be implementing any tariff hike on July 1.
Energy experts explained that the tariff review is based on a template that does not necessarily require approval, and factors such as exchange rates and inflation are taken into account.
Distribution companies face challenges such as energy theft and meter-bypass, which affect their income and ability to provide reliable power supply.
The projected tariff review in July was expected to address fuel subsidy removal and increase tariff bands D and E.
Experts projected that the new average tariff could reach around N88/kilowatt to cover operational costs.
