Nigerians are advised to brace themselves for tougher times ahead as the electricity tariff is expected to increase by over 40 per cent in the coming days.
According to reports, the development may lead to the end of all forms of energy subsidy in the country.
It was learnt that the monthly subsidy of about fifty billion naira in the electricity sector was due to revenue shortfall, and the tariff hike, which was set to take effect from July 1.
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The above will be another test for the President Bola Ahmed Tinubu administration’s market reform, reports stated.
The administration has already removed subsidies on Premium Motor Spirit (PMS) and floated the naira, which has complicated the price-setting of the Nigerian Electricity Regulatory Commission, NERC 2022 Multi-Year Tariff Order (MYTO).
Despite the power sector players’ inability to meet the threshold of supplying at least 5,000 megawatts a year after signing contracts with NERC, NERC’s current Service Based Tariff was benchmarked on an exchange rate of N441/$ and inflation of 16.97 per cent.
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