Aba Power, a prominent electricity distribution company operating in Abia State, has announced a significant increase in electricity tariffs, with rates rising by over 50%.
The new tariffs took effect on January 1, 2025, following approval from the Nigerian Electricity Regulatory Commission (NERC).
The announcement was made via the company’s official X (formerly Twitter) handle, where details of the new tariff structure were outlined. Customers categorized under Band A feeders will now pay between N219.70 and N241.45 per kilowatt-hour (kWh), a steep rise from the previous N99/kWh. Band B customers are to pay between N180.77 and N203/kWh, while Band C feeders face charges ranging from N145 to N205/kWh.
Aba Power justified the increment by citing the challenging macroeconomic environment, which has significantly affected its operational costs. In a statement accompanying the notice, the company explained:
“We also wish to inform you that we have recently received an approval order from the Nigerian Electricity Regulatory Commission (NERC) for an adjustment of electricity tariffs, effective January 1, 2025. This adjustment will enable us to cushion the effects of recent macroeconomic developments in Nigeria on our ability to continue to deliver a high quality of service to our customers in compliance with regulatory standards.”
The tariff hike has sparked mixed reactions among residents of Abia State. Some expressed concerns over the potential financial strain the increase may impose on households and businesses already grappling with high inflation and economic uncertainties.
Aba Power’s announcement comes against the backdrop of Nigeria’s broader energy sector challenges, including rising fuel prices, foreign exchange instability, and infrastructure maintenance costs.
Industry stakeholders have long advocated for cost-reflective tariffs as a means to ensure sustainability in electricity distribution.