Nigerians make last-minute bulk electricity purchase ahead of 40% tariff increase

Ahead of the planned electricity tariff increase, many Nigerian households have decided to purchase units in bulk at the current rate.

The decision they hope will help them save costs when the new electricity tariff is implemented.

Legit.ng earlier reported that the federal government plans to increase electricity tariffs by 40% starting from Saturday, July 1, 2023.

DisCos announce changes Although there is no official confirmation yet on the changes, reports emerged recently that electricity companies have already started informing their customers about tariff changes.

ThisDay reported that the companies explained that the fluctuating exchange rate influences the changes.

For instance, a message from Abuja Electricity Distribution Company(AEDC) to its customers, as reported by BusinessDay reads: "Effective July 1st, 2023, please be informed that an upward review of the electricity tariff will be influenced by the fluctuating exchange rate.

"Under the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1, which will impact the tariffs associated with your electricity consumption."

Following public dissatisfaction, AEDC was forced to retract its notice and apologise to Nigerians.

However, despite the denial and apology, it appears the new electricity tariff will be effective from July 1, 2023.

Banks' messages to customers

Commercial banks and fintech companies are already started sending messages to their customers on the new electricity tariff.

A message from Alat by Wema Bank to its customers reads as follows: "Stock up on your electricity at the current price before price increase from Saturday, July 1, 2023."

Here's how the new electricity tariff will work

Legit.ng understands that for Nigerians in Band B or C (12-20 hours/day), the new tariff could go as high as N100 per unit (kWh).

While customers in Band A (20 hours or more per day) could be charged N120 and N140 per unit.

DisCos are now awaiting approval from the Nigerian Electricity Regulatory Commission (NERC) to implement the imminent changes.