Federal Universities Struggle with High Electricity Bills

• Federal universities in Band A areas face steep electricity bills due to a 300% tariff increase from N68/KWh to N225/KWh
• Ahmadu Bello University’s monthly electricity bill increased to N366.7 million, leading to potential higher fees for students and staff

Federal universities in areas designated as ‘Band A’ by Electricity Distribution Companies are struggling with steep electricity bills. This comes after the Nigerian Electricity Regulatory Commission (NERC) approved a 300% increase in tariffs for Band A customers, raising the rate from N68/KWh to N225/KWh.

NERC Vice Chairman, Mr. Musiliu Oseni, announced in Abuja that the rate increase affects only 15% of the country’s electricity customers. He explained that these customers consume 40% of the nation’s electricity and are entitled to a minimum of 20 hours of power per day, measured over one week.

Due to this announcement, federal universities in Band A areas have seen their monthly electricity bills quadruple. An energy audit at Ahmadu Bello University (ABU) in Zaria revealed the university’s monthly electricity consumption is about 1,629,936 kW. The new rate of N225 per kW translates to a monthly bill of N366.7 million and an annual bill of N4.4 billion.

When asked about this, Auwal Umar, Director of Public Affairs at ABU, confirmed the situation. A reliable source further explained that ABU’s annual electricity bill will jump from approximately N1.2 billion to N4.4 billion. The university must now pay N3.3 billion for electricity from April to December 2024, compared to the previously budgeted N997 million for nine months.

The municipal charge per student for this academic session was N15,000, covering electricity, water, and sanitation, amounting to N750 million for 50,000 students. With the new tariff, the cost per student would be N88,000.

The source indicated that non-constituted university councils or the acting council (the education minister) must address the tripled electricity bill for April to December 2024. It is unlikely that students will be billed mid-session, but the new tariff will likely impact registration fees for the next academic session. Municipal service charges may increase by N70,000, and staff living on campus should prepare for higher electricity costs.