Minister of Power, Adebayo Adelabu, has revealed that the N225 per kilowatt-hour paid by Band A electricity consumers could decrease if the exchange rate improves to below N1,000 per dollar.
Adelabu made this statement during an appearance on Channels Television's Politics Today program.
The Federal Government, through the Nigerian Electricity Regulatory Commission, announced on April 3 that subsidy would no longer be provided for Band A customers, resulting in an increase in their tariff from N68/kWh to N225/kWh.
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Adelabu explained that 1 kWh represents the energy consumed by a 1,000-watt appliance in one hour, providing examples for clarity.
He emphasized that despite the increase, Band A tariffs remain cheaper than fuel expenses.
Adelabu assured that tariff adjustments would reflect changes in the exchange rate, with the potential for rates to decrease below the current N225/kWh.
He highlighted the complexity of tariff determination and reiterated the government's commitment to transparency and sector transformation.
The Power Minister acknowledged that resolving power sector challenges, rooted in decades-long issues, would take time but affirmed progress.
Efforts to elevate customers from other bands to Band A are underway alongside improvements in power generation.
Criticism has been directed at the administration of President Bola Tinubu regarding the electricity hike, prompting calls for a reversal of the decision.
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