Aba Power, a key electricity distribution company in Nigeria, has announced a significant tariff hike of over 50% for customers within its service areas in Abia State. This move, effective February 2025, is part of broader adjustments to reflect current market realities and the rising cost of energy generation and distribution.
The increase has sparked mixed reactions among residents and businesses in the region. While some understand the need for price adjustments due to inflation and currency depreciation, others have expressed frustration over the burden it places on their finances. Consumer advocacy groups like Electricity Consumers Association of Nigeria (ECAN) have called for more transparency in the tariff-setting process.
The tariff hike is expected to boost revenue for Aba Power, enabling it to invest in infrastructure upgrades. These improvements include the replacement of outdated transformers, expansion of distribution lines, and introduction of smart metering systems to curb energy theft. For businesses reliant on stable electricity, the anticipated improvements could enhance productivity in the long run.
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However, critics argue that such increases should be accompanied by clear evidence of service improvement. They urge regulatory authorities like the Nigerian Electricity Regulatory Commission (NERC) to ensure that distribution companies deliver on their promises before passing additional costs to consumers.
The tariff review is part of a broader reform agenda under the Federal Government’s Power Sector Recovery Program (PSRP). The PSRP aims to address inefficiencies in the electricity sector and create a more sustainable energy market for Nigeria.
