Minister of Power, Adebayo Adelabu, has responded to criticism surrounding the recent electricity tariff increase for Band A customers, attributing the backlash mainly to individuals who previously neglected their electricity payment obligations.
Speaking at the 8th Africa Energy Marketplace forum, Adelabu emphasized that the new tariff structure has, in fact, led to a 30 to 40 percent reduction in energy expenses for consumers within this category.
“The electricity tariff adjustment was not intended to impoverish Nigerians or exacerbate the economic challenges posed by high inflation and a weakening naira. Instead, it aims to alleviate the hardships faced by the people,” Adelabu explained.
He elaborated that those in Band A, if they accurately calculate their expenses on grid electricity and generator usage prior to the tariff revision, would see a significant reduction in their overall energy costs.
“We are also consumers of electricity, and we can confirm this reduction. While it is true that bills for Band A customers may have doubled, the savings on generator servicing, diesel, and petrol have substantially decreased,” the minister stated.
Addressing concerns that the new tariff could drive up production costs and subsequently the prices of goods and services, Adelabu dismissed these claims as illogical. He argued that manufacturers under Band A should now experience lower energy costs, thereby reducing their production expenses—unless they were not paying for electricity before the tariff change.
“We can collectively review and compare our expenses with practical examples, but the notion that this tariff hike will increase production costs is unfounded, given my experience in the industry,” Adelabu concluded.
