The Nigerian Electricity Regulatory Commission (NERC) has said the newly approved tariff is expected to reduce subsidies for the 2024 fiscal year by 1.14 trillion naira.

In a statement, the Vice Chairman of NERC, Musiliu Oseni said this is in furtherance of the federal government’s realignment of the subsidy regime.

Oseni said the federal government had indicated a transition in policy direction towards introducing a more targeted subsidy regime aimed at mitigating the impact of changes in macroeconomic parameters.

He said this will be done while largely protecting vulnerable customers and fostering investments targeted at providing efficient service delivery in the Nigerian Electricity Supply Industry (NESI).

OSENI said the commission, upon due consideration of the tariff applications, approved revised rates affecting only customers classified under Band A category which is about 15 per cent of the customer population.

The hike will see the customers pay N225 kilowatt per hour, an increase from the current N66.

He said empirical service data had confirmed that this class of customers had truly received the committed level of service.

Speaking subsequently in an interview, Oseni said the move is also backed by the commission’s Act.

Callers on Inspiration FM’s breakfast show, The Big Story also reacted to the development.