Abuja Electricity Distribution Company, AEDC, has announced the new tariff increment in the Federal Capital Territory, FCT, from July 1 2023 due to what it described as fluctuation of the Nigerian currency in the exchange rate market.

The review of the new tariff is coming on the heels of the recently suspended subsidy of petrol which has sent the prices of transportation, food, and other basic services to an all time high.

In a statement by the AEDC, the distribution company said base tariff for customers within band B and C, with supply hours ranging from 12 -16 per day, is expected to be N100 per kWh while Bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.

The statement reads: “please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate effective July 1st 2023.

“The new base tariff for customers within band B and C, with supply hours ranging from 12 -16 per day, is expected to be N100 per kWh while Bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.

“We encourage customers with a prepaid meter to consider purchasing bulk energy units before July to take advantage of the current rates and potentially make savings before the new tariffs come into effect.

“And for those on post paid (estimated) billing, a significant increment is imminent in your billing, starting from August.”

Recall that Labour Unions in Nigeria have called on the Federal Government to set aside the proposed plan to increase electricity tariff by 40 percent starting from 1st of July for the collective good and safety of Nigerians.

Mr Joe Ajaero, the President of the Nigeria Labour Congress noted that the plan to increase electricity tariff by 40 per cent would further compound the current hardship of ordinary Nigerians.

The Labour president said that the proposed hike would lead to a ripple effect by other product or service providers in the country.

He called for more innovative interventions to cushion the effect of the tariff hikes and high cost of fuel on majority of Nigerians

In its part, the Manufacturers Association of Nigeria (MAN) rejected the proposed 40 percent hike in electricity tariff scheduled to take effect from July 1, 2023, saying the move is “simply outrageous.”

In a statement, the manufacturers stated that the proposed increase in tariff would lead to rise in cost of production, reduction in manufacturers’ profit margin, high probability of activities paralysis and potential reduction in government’s collectible revenue.

They argued strongly that as a matter of fact, any further rise in electricity tariff will directly increase the cost of production for manufacturers.