The Federal Government has clarified that the recent hike in electricity tariffs will only impact a small segment of consumers, estimated at 1.5 million, amid concerns raised by Nigerians over the country’s economic challenges.

The Minister of Power, Adebayo Adelabu, revealed that the tariff adjustment primarily targets Band A customers, who receive electricity supply for at least 20 hours per day. This group constitutes only 15 percent of electricity consumers in Nigeria, out of a total of approximately 12 million customers in the sector.

Adelabu emphasized that the remaining 10.5 million customers will continue to benefit from the government’s subsidy, which covers about 70 percent of their electricity costs.

“From the policy formulation perspective, the recent increase in tariff for only Band A customers which is just 15 per cent of electricity consumers in Nigeria. As of the latest statistics, there are a little about 12 million customers in the sector and this [tariff hike] would only affect about 1.5 million customers,” he said.

“The remaining 10.5 million customers will continue to enjoy the government’s subsidy at about 70 per cent.”

Addressing concerns about the country’s rising inflation rate, currently at 31.70 percent according to the National Bureau of Statistics (NBS), Adelabu assured that the government remains sensitive to the people’s hardships.

He reiterated that while the goal is to eventually implement a “cost-reflective” tariff, the current economic realities necessitate a gradual approach to removing electricity subsidies.

“The government is so sensitive to the pains of the people; to the sufferings of the people and we are not ready to aggravate this suffering any longer which is why we said it must be a journey rather than a destination,” the minister said.

“And the journey starts now. That we should do a gradual migration from the subsidy regime to a full cost-reflective regime and we must start with some customers.”

He, however, called on players in the power sector to give value to electricity consumers.

“Whatever consumers pay for, there must be commensurate value for it,” Adelabu said.