The Minister of Power, Adebayo Adelabu, has said he is optimistic about the reduction of electricity tariff.
Adelabu disclosed this on Friday during the sectoral briefing by ministers in Abuja.
Recall that on April 3, the Nigerian Electricity Regulatory Commission, NERC, announced a 240 per cent electricity tariff hike for band A customers who receive a 20-24 hour power supply.
After the Nigeria Labour Congress and Trade Union Congress called for reversal, the Commission slashed the tariff by N18.
Unsatisfied with the development, the Organised Labour threatened to go on strike.
Meanwhile, Adelabu said the electricity hike for Band A customers is a temporal hardship pending an increase in power sector output.
The minister stated that the tariff is similar to the initial price surge observed in the telecommunication sector, which eventually saw prices decrease over time.
“The electricity tariff might look expensive at the moment. But I’m optimistic that these tariffs will go down. We know how much we were buying SIM cards when the telcos just came. We know how much we were buying telephones.
“But gradually, as we scale up in generation, transmission and distribution, these prices will also decrease. It’s a temporary hardship leading to a permanent gain,” Adelabu said.
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