Adelabu reeled out the benefits accrued so far following the electricity tariff increase for Band A customers in the country.
Nigeria's Minister of Power, Adebayo Adelabu, has argued that the condemnations trailing the electricity tariff increase for Band A consumers are being made by those not used to paying electricity bills in the past.
The minister made the assertion while speaking at the 8th Africa Energy Marketplace forum in Abuja on Thursday, May 16, 2024.
According to him, the introduction of the new tariff has led to a reduction in energy costs for consumers in the band by 30 to 40%.
Adelabu also debunked the notion that the new electricity price regime has jacked up the cost of production for manufacturers, contributing to the high cost of goods and services.
Minister says electricity tariff meant to help Nigerians
He stressed that the new tariff was not targeted at further impoverishing Nigerians or worsening the already bad economic situation but was introduced to reduce the people’s hardship.
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“Those on Band A, if they should do their arithmetic properly, to compare what they have been spending on energy provision from grid supply and energy generators put together, before the review of tariff, they have achieved nothing less than 30 to 40 per cent reduction in their total cost. That is the truth.
“We are also electricity consumers, so we can attest to this fact. It is true that if you were in Band A, your bill would have doubled if not more. But check out what you have been spending on your generator servicing, diesel and petroleum procurement, it would have gone down considerably.
“So the argument of this new tariff having the capacity of increasing the cost of production and raising the prices of goods and services is not logical.
“Manufacturers under Band A should have a lower Energy cost by now, thereby, reducing their cost of production. Except those that have not been paying for electricity in the past. We can also come together to compare notes with practical example. But how this new tariff regime will increase the cost of production is not valid because I am in that industry too,” Adelabu said.
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Adelabu says Nigerians deserve better power supply
Speaking further, the minister admitted that Nigeria shouldn't be suffering from a lack of power supply given the abundance of sun, water, and gas resources available in the country.
He bemoaned the backwardness that has beset the sector for over six decades.
For his part, the Vice President, Power, Energy, Climate Change and Green Growth Complex of the African Development Bank (AfDB), Dr Kevin K. Kariuki, announced plans to support Nigeria's power with $1bn.
Kariuki disclosed that the support fund would be funnelled through a Policy-Based Operation (PBO) with a significant energy component aimed at supporting the ongoing power sector reforms triggered by the new Electricity Act.
He added that AfDB would finance the policy recommendations to actualise the expected outcomes from the National Integrated Electricity Policy and Strategic Implementation Plan.
