The Nigerian Electricity Regulatory Commission has approved an increase in electricity tariffs for customers classified under Band A, who enjoy 20 hours of electricity supply daily.

According to Musliu Oseni, Vice Chairman of NERC, customers in Band A will now pay N225 per kilowatt-hour, up from the current N66.

Speaking at a press briefing in Abuja on Wednesday, Oseni noted that Band A customers represent 15 percent of the 12 million electricity customers in the country. He mentioned that some customers previously classified under Band A have been downgraded to Band B due to non-fulfillment of the required hours of electricity provided by distribution companies.

“We currently have 800 feeders categorized as Band A, but it will now be reduced to under 500,” Oseni stated. “These feeders only service 15 percent of total electricity customers connected to the feeders.”

The tariff review, however, will not affect customers in other bands.

Sources within the presidency revealed to Bloomberg that power companies will be permitted to raise electricity prices to N200 per kilowatt-hour from N68 for urban consumers. This move aims to attract new investment and reduce the approximately $2.3 billion spent on capping tariffs.

Additionally, the price of natural gas, which is used to generate over 70 percent of electricity in Nigeria, saw an increase following an announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority on Monday.

Nigerians will now pay $2.42 per one million British thermal units, up from the previous rate of $2.18 MMBtu.