The Minister of Power, Adebayo Adelabu, says the N225 kilowatt-hours being paid by electricity consumers on Band A will reduce if the exchange rate falls below N1,000 to a dollar.
Adelabu said this on Thursday when he appeared on Channels Television’s Politics Today.
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 others maintain the old tariffs.
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 that 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 the composition of the tariff, and we are not closing our eyes to it. We are publishing it, we are transparent, and we are talking to Nigerians and all the stakeholders in the stakeholders in the power sector. This administration is very serious, and we are committed to transforming the sector,” Adelabu declared.
According to him, the current problems in the power sector had accumulated for over 50 years, and they could not be resolved in a year.
“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 criticism for the recent electricity hike, as groups and individuals called for a reversal of the decision.