The Transmission Company of Nigeria (TCN) recently asserted that the cost of energy in Nigeria is more competitive than that of several neighboring African countries. This statement comes in the wake of a significant increase in electricity tariffs across the nation.
On April 3, 2024, the Nigerian Electricity Regulatory Commission (NERC) implemented a new tariff structure that raised costs for consumers receiving at least 20 hours of power daily, categorized under Band A. This change has sparked considerable public outcry.
The increase saw the tariff jump from N66 to N225 per kilowatt-hour, prompting widespread criticism regarding the timing of the hike. Many Nigerians, already facing economic challenges following the removal of the petrol subsidy, have voiced their concerns and called for a review of the new rates.
Despite the backlash, TCN Managing Director Sule Abdulaziz defended the price increase during an appearance on Channels Television. He emphasized that, when compared to other African nations, Nigeria’s electricity costs remain lower.
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Abdulaziz explained that the higher electricity costs in Nigeria result from the expensive nature of power production. He cited factors such as the exchange rate and generation costs as significant contributors to this issue.
He further clarified that while electricity in Nigeria may seem costly, it is actually being provided at a cheaper rate compared to other countries in the region. He mentioned that Nigerians are receiving an average of 24 hours of supply daily, particularly those classified under Band A, who enjoy 20 to 22 hours.
The TCN Managing Director expressed optimism about the future of Nigeria’s electricity supply. He assured that the country could achieve a stable power supply within the next five years, highlighting improvements in electricity distribution over the past year.
Abdulaziz pointed out that many Nigerians recognize the enhancements in power supply, indicating that this positive trend is expected to continue. His comments reflect a commitment to improving the electricity situation in the country.
In summary, while the recent tariff hike has raised concerns among consumers, TCN maintains that Nigeria’s energy costs are still favorable compared to other African nations. The company remains hopeful for continued improvements in power supply in the coming years.
