(Nawaa oo)Nigerian govt increases electricity tariff by over 50% again

The Nigerian government has yet again approved an increase in electricity tariff payable by electricity consumers in Nigeria.

The Nigerian Electricity Regulatory Commission, NERC, approved over 50 per cent hike in electricity tariff payable by customers of the 11 Distribution Companies, DisCos.

Daily Trust reported that a Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, Sanusi Garba, on December 30, 2020, showed that the new tariff increase took effect on January 1, 2021.

The new increment is coming barely two months after the implementation of the controversial hike proposed last year.

The new order supersedes the previous Order NERC/2028/2020.

In the new order, NERC said it considered the “…14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms to raise the tariff…”

Unlike the earstwhile order implemented in 2020, which exempted low power consumers, the revised Service Based Tariff (SBT) also saw increase in the rates payable by all classes of electricity users.

The order is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021.

Last December, NERC announced that it had begun a review of the new tariff.


Earlier in September 2020 during covid-19,the proposed hike was greeted by outrage among Nigerians, including labour unions.

The Nigerian government thereafter suspended the hike, amidst dialogues with stakeholders.

In November, the tariff was eventually implemented while discounts were given for sundry categories of customers.

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