The Nigerian Electricity Regulatory Commission (NERC) has decided to backtrack on its earlier plan to implement a transition to a cost-reflective tariff on April 1.
In its December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020, the NERC had initially announced the impending switch to cost-reflective tariff, which was anticipated to result in a rise in electricity tariffs.
However, Minister of Power, Mamman Sale, revealed that the Federal Government has agreed to postpone the introduction of the new tariff plan in the Nigerian power sector by 3 months. This decision was attributed to the impact of the COVID-19 pandemic and the current economic conditions in the country.
In a tweet, Sale stated, “The Federal Government has agreed to delay the implementation of a new tariff plan in the Nigerian Power sector by 3 months. This is in relation to the #COVID19 pandemic and current economic reality of the Country.”