Adebayo Adelabu, the Minister of Power, has hinted at a possible reduction in electricity tariffs for Band A consumers once the exchange rate falls below N1,000 to a dollar. The current tariff for Band A stands at N225 per Kilowatt-Hour (KWh).
In a recent statement, Minister Adelabu emphasized the flexibility of the tariff structure, suggesting that positive fluctuations in the exchange rate could lead to downward adjustments in electricity prices. He reaffirmed the government’s commitment to transparency and engagement with stakeholders in the power sector, highlighting ongoing efforts to address the challenges facing the industry.
“The tariff is flexible. I can tell you, if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff; and the tariff, even for Band A, will come down below the N225/KWh that we are currently charging,” stated Minister Adelabu.
He acknowledged the complexity of determining electricity tariffs, citing various factors that influence the pricing structure. Despite the challenges, Minister Adelabu underscored the government’s dedication to transforming the power sector and emphasized the progress made in recent years.
“The problem we are having is an accumulated problem of over 50 years, it will not disappear in one year, but we’ve been making consistent and gradual progress,” he remarked.
The Minister’s remarks come amid ongoing discussions and initiatives aimed at enhancing the efficiency and affordability of electricity supply across the country. With the government’s commitment to fostering transparency and engagement, stakeholders are hopeful that efforts to address tariff concerns will yield positive outcomes for consumers and the power sector as a whole.
As the exchange rate dynamics continue to evolve, consumers and industry players will closely monitor developments to assess the potential impact on electricity tariffs. Minister Adelabu’s statements signal a proactive approach by the government to adapt tariff policies in response to changing economic conditions, reflecting a broader commitment to sustainable reform in the power sector.
