FX Rates: Aso Rock Affected as Abuja DisCo Moves to Hike Tariff From July 1, Blames Fluctuating Exchange Rate
- Abuja DisCo has sent notice to its customers on tariff hike effective July 1, 2023
- The electricity company revealed that the fluctuating cost of foreign exchange is responsible for its actions
- Abuja DisCo serves the states of Kogi, Nasarawa, Niger, and the Federal Capital Territory (FCT)
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The Abuja Electricity Distribution Company (AEDC) said it would hike tariffs due to exchange rate fluctuations in Nigeria
AEDC is one of the 11 power distribution firms in the country and has a franchise for the distribution and sale of electricity across an area of 133,00 km2 in the Federal Capital Territory (FCT), including Niger, Kogi, and Nasarawa states.
Source: Twitter
CBN devalues the naira, causing a rise in the cost of products and services
In a statement on Sunday, June 25, 2023, the electricity company revealed that the upward hike is required because of the fluctuation of the naira in the exchange rate market.
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The naira traded at N756 to a dollar last week at the official Investors and Exports (I&E) window.
The I&E exchange is Nigeria’s official foreign exchange window.
TheCable reports that the development follows the floating of the naira by the Central Bank of Nigeria, which directed commercial banks to sell foreign exchange freely at market-determined rates.
For the first time in eight years, the foreign exchange floated and allowed to trade at market-set prices.
Abuja DisCo said:
“Effective July 1, 2023, please be informed that the fluctuating exchange rate will influence an upward review of the electricity tariff.
“Under the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1, impacting the tariffs associated with your electricity consumption.
“For those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August.”
Abuja DisCo is owned by the Transcorp Group, owned by billionaire businessman Tony Elumelu.
ThisDay reports that the federal government, through the National Council on Privatisation (NCP) approved the acquisition of Abuja Electricity Distribution Company (AEDC), by the Transcorp Group Consortium in April this year.
FG Set to increase electricity tariff by 40 percent in July as subsidy ends
Legit.ng reports that Nigerians will pay more for electricity in the coming days as the tariff is set to go up to as high as 40%.
The move will end all forms of subsidy in the electricity and energy sectors in the country.
The Guardian reports that a monthly subsidy of N50 billion in the electricity industry is due to poor revenue, and the tariff increase coming on July 1 is another test for President Bola Tinubu’s reforms.
Source: Legit.ng
