If exchange rate drops to N1,000/$ electricity tariff will reduce – Adelabu

Adebayo Adelabu, the Minister of Power has explained that the electricity tariffs that were recently increased, will reduce if the exchange rate falls below N1,000 to a dollar.

Adelabu said this comment when he appeared on Channels Television’s Politics Today on Thursday.

On April 3, the Nigerian Electricity Regulatory Commission, NERC, announced the removal of subsidy on the electricity consumed by Band A customers.

Band A customers  who is paying 68/kWh before is now paying N255/KWh, while others maintain the old tariffs but a condition is now given by Adelabu for a possible reduction.

“The tariff is flexible. I can tell you if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff; and the tariff, even for Band A, will come down below the N225/KWh that we are currently charging.