The Nigerian government’s initiative to adjust electricity tariffs is poised to slash monthly subsidy spending by 52 per cent, resulting in a substantial fiscal saving of N135.26 billion.
The current N261.2 billion subsidy expense is projected to decrease to approximately N125.94 billion.
Abuja, the nucleus of Nigeria’s political influence, hosts the largest concentration of high-end electricity consumers falling under Band A, who will bear the primary impact of this tariff adjustment.
Below is a breakdown of the anticipated impact of the new tariff hike on subsidy costs for each Power Distribution Company (DisCo), as outlined by the Nigerian Electricity Regulatory Commission (NERC):
Abuja (AEDC)
Number of Band A Feeders: 107
The new tariff range is N33.95 to N225.00, and the monthly subsidy cost is N18.95 billion, down from N38.01 billion previously.
Benin (BEDC)
Number of Band A Feeders: 44
Customers in this area will see a new tariff range of N41.20 to N225.00. The new subsidy cost is N11.01 billion, a decrease from the previous N21.69 billion.
Eko (EKEDC)
Number of Band A Feeders: 21
The new tariff is set at N32.44 to N225.00, with subsidy costs now at N13.74 billion compared to N32.28 billion.
Enugu (EEDC)
Number of Band A Feeders: 44
For Enugu, the tariff range is N36.20 to N225.00, with a new subsidy figure of N10.31 billion, down from N19.59 billion.
Ibadan (IBEDC)
Number of Band A Feeders: 30
The tariff range for Ibadan is N36.26 to N225.00, and the subsidy cost has been reduced to N11.16 billion from N31.31 billion.
Ikeja (IEDC)
Number of Band A Feeders: 45
Customers will be charged within the new range of N31.24 to N225.00, and the subsidy cost has been lowered to N17.03 billion from the previous N38.37 billion.
Jos (JEDC)
Number of Band A Feeders: 48
The new tariff range for Jos is N39.90 to N225.00, and the subsidy cost is now N9.19 billion compared to N15.51 billion before.
Kaduna (KAEDC)
Number of Band A Feeders: 25
The tariff has been revised to range from N35.41 to N225.00, and the subsidy cost is now at N9.76 billion, down from N18.24 billion.
Kano (KEDC):
Number of Band A Feeders: 43
For Kano, the new tariff range is N31.88 to N225.00, with a reduced subsidy cost of N7.79 billion from N18.48 billion.
Port Harcourt (PHEDC)
Number of Band A Feeders: 43
The tariff range here is now N39.44 to N225.00, and the new subsidy cost is N10.13 billion, compared to N18.89 billion previously.
Yola (YEDC)
Number of Band A Feeders: 15
The new tariff range for Yola is N30.01 to N225.00, with the subsidy cost now at N6.87 billion, down from N8.83 billion.
The government’s adjustments signal a substantial change in electricity subsidy spending nationwide, with the aim of better matching power costs to market supply and demand dynamics.
This reduction in subsidy outlay, especially amid mounting economic pressures from other macroeconomic factors, carries extensive implications for consumers and the power sector.
