The federal government has again approved an increase in electricity tariff payable by electricity consumers in Nigeria.

The Nigerian Electricity Regulatory Commission, NERC, approved over 50 per cent hike in electricity tariff payable by customers of the 11 Distribution Companies, DisCos.

A Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, SANUSI GARBA, on December 30, 2020, showed that the new tariff increase took effect on January 1, 2021.

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

In the new order, NERC said it considered the 14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms, to raise the tariff.

The order is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021.