By Muhammad Sal
The Nigerian Electricity Regulatory Commission (NERC) has announced a significant tariff relief package under the Electricity Act 2023, aimed at easing the financial burden of electricity costs on poor Nigerians and critical institutions such as schools and hospitals.
This development was revealed by NERC’s new Chairman, Abdullahi Ramat, in Kano during a meeting with the Aminu Kano Teaching Hospital leadership on October 2, 2025.
The relief package is part of the Power Consumer Assistance Fund (PCAF), a support mechanism enshrined in the Electricity Act designed to cushion vulnerable electricity consumers from rising tariffs.
The fund will be sourced from both the Federal Government’s budget – approved through the National Assembly – and contributions from wealthier electricity users, including large industries.
NERC will manage the fund, determining eligibility and subsidy distribution based on policy guidelines from the Minister of Power.
According to Chairman Ramat, PCAF will provide tangible support to low-income households, schools, and hospitals, who have been disproportionately affected by recent tariff increases.
This fund will help defray electricity bills by subsidizing consumption, with proposals for a minimum monthly subsidy of around N5,000 per eligible consumer, roughly equivalent to 25 kilowatt-hours of power usage.
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