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.”
Customers react
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.
- On X (formerly Twitter), Amanze Emenyonu (@AmanzeEmenyonu) wrote “I hope you understand that there was a condition for this migration, that you will supply 20-24hrs in Bank A feeders. Since the first you have not been able to maintain that, as I speak to you now Aba township has been out of supply for over 4 hours now. I advise that you revert .”
I hope you understand that there was a condition for this migration,that you will supply 20-24hrs in Bank A feeders.Since the first you have not been able to maintain that,as i speak to you now Aba township has been out of supply for over 4 hours now. I advice that you revert .
— Amanze Emenyonu (@AmanzeEmenyonu) January 4, 2025
- Kelvin (@Kelvin_chuks_) noted “Why will you guys increase tariff without prior notice to your customers? You’ve implemented the new tariff plan since yesterday before telling your customers today. That’s very bad.”
Why will you guys increase tariff without prior notice to your customers. You've implemented the new tariff plan since yesterday before telling your customers today. That's very bad
— Kelvin (@Kelvin_chuks_) January 3, 2025
- Legit (@uzisika) wrote “100% increase really. you guys are no different. This is fraudulent”
100% increase really. you guys are no different. This is fraudulent
— Legit (@uzisika) January 4, 2025
- Ányànwụ̀ Chị́dìébérè (@anyanwu_chidi_e) wrote “Your media team is doing a very bad job. There has never been a time they give proper information before a major disruption in power or breakdown. You had to wait for people to cry out first before you do the needful after about two days of implementation. Did you inform people prior to the approval? You guys need to do better with information decimation.”
100% increase really. you guys are no different. This is fraudulent
— Legit (@uzisika) January 4, 2025
- Chidiebere (@chidieberechr36) reacted “Who and who did you say you consulted…or are you just another bunch of thieves? 100% increment, for what?”
Who and who did you say you consulted…or are you just another bunch of thieves?
100% increment,for what?— chidiebere (@chidieberechr36) January 5, 2025
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.
What you should know
- In April 2024, NERC approved an electricity tariff hike for DisCos.
- According to NERC, between 2024/Q2 and 2024/Q3, the subsidy obligation of the federal government increased by +N84.06 billion, from N380.06 billion (52.51% of total GenCo invoice) to N464.12 billion (54.71% of total GenCo invoice).
