On Tuesday, the Minister of Power, Adebayo Adelabu, stated that Nigeria benefits from some of the lowest electricity tariffs in Sub-Saharan Africa.
Adelabu made this statement during a public hearing held in Abuja, organized by the House of Representatives Joint Committee on Power, National Planning, and Delegated Legislation.
During his address, Adelabu highlighted that the implementation of Band A, which carries a higher tariff, has significantly reduced electricity subsidies from about N3 trillion to N1 trillion.
“We still maintain one of the lowest tariffs in Sub-Saharan Africa, despite the current rates. Our neighboring countries pay considerably more for electricity. Therefore, our prices are not directly comparable to theirs.
“Band A offers a more cost-effective option for power generation. It is almost 50 percent less expensive to connect to Band A of the national grid compared to relying on fuel and diesel for power generation.
“So, even though there are complaints about the higher tariff, it is still more economical for businesses to pay for a connection to the grid than to generate power independently,” Adelabu explained.
