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Business News of Tuesday, 5 January 2021

Source: Legit

FG says gas price, inflation rate prompted latest increase in electricity tariff

The Nigerian government has explained why it yet again approved an increase in electricity tariff payable by electricity consumers in the country.

A report emerged on Tuesday, January 5, that the Nigerian Electricity Regulatory Commission (NERC) approved an increase in electricity tariff across the country, according to Daily Trust.

The commission in a directive issued on December 31, 2020, stated that the new tariff will take effect from January 1, 2021.

According to NERC, the following reasons that prompted the recent tariff hike include:

1. Nigeria’s inflation rate

2. Exchange rate

3. US rate of inflation

4. Available generation capacity

5. Gas price

6. MDA losses and Capex (Capital expenditures) adjustment

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

Meanwhile, Nigeria's power industry has made a historic achievement as the Transmission Company of Nigeria (TCN) announced that the national grid recorded its highest national peak of 5,459.50MW, Channels TV reported.

The new figure beats the previously recorded highest peak of 5,420.30MW by 39.2MWs which is the highest ever recorded in Nigeria's power sector as of date.

The former highest peak was achieved on August 18. 2020. Ndidi Mbah, the general manager, public affairs, TCN, who made this known in a statement issued on Friday, October 30, noted that this new record was achieved on Wednesday, October 28.

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