FG Restores Band A Customers’ Electricity Subsidy

The Federal Government of Nigeria has reinstated energy subsidies for Band A users, providing N22.29 per kWh to help cover the costs for this consumer category, according to Daily Trust. This ruling comes after the Nigerian Electricity Regulatory Commission (NERC) increased Band A consumers’ rates from N68/kWh to N225/kWh in April 2024.CONTINUE FULL READING>>>>>

The tariff hike had removed subsidies, impacting high-consumption households and businesses within this category.

Band A customers are electricity consumers who receive at least 20 hours of power supply daily. This group represents approximately 15% of the nation’s electricity users but accounts for an estimated 40% of total energy consumption.

The subsidy reintroduction aims to mitigate the financial impact of the earlier tariff increase.

However, it is expected to contribute to the government’s expenditure on electricity subsidies, projected to reach N2.4 trillion by the end of 2024.

Further details on the subsidy implementation and its effect on the electricity supply chain are expected in subsequent announcements from relevant authorities.CONTINUE FULL READING>>>>>