Home Energy Nigerian consumers to pay more VAT as discos begin implementation

Nigerian consumers to pay more VAT as discos begin implementation


The Federal Government as part of efforts to shore up Government revenue had in the new finance law, approved an increase in VAT from five per cent to 7. 5 percent. Taking the first bold step is the Eko Electricity Distribution Company which has announced that from February 1, the prices of meters sold to customers under the Meter Asset Provider (MAP) scheme will be reviewed to reflect the increase in VAT recently implemented by the Federal Government.

This was even as he  disclosed further that VAT on tariffs have been adjusted to accommodate the new 7.5 per cent rate, and service charges on installmental meter payments through MAP will be reviewed to accommodate the new VAT charge.

According to the EKEDC Corporate Communications General Manager, Godwin Idemudia, stated that, this was in compliance with the 2019 Federal Government directive which would see an increase in VAT from 5 per cent to 7.5 per cent from the first day of February 2020.

He further stated that customers should now expect to pay “39,765.86 (VAT inclusive) for a single-phase meter and 72,085.68  (VAT inclusive) for a three-phase meter”.

Idemudia used the opportunity to appreciate customers for what he described as their “unwavering support” and urged them to always pay bills on time, as these are the major source of funding for several projects underway to improve service delivery in their operational network. For the Abuja Electricity Distribution Company (AEDC), it informed its customers that the new VAT of 7.5 per cent will from February 1, be reflected in all its services (electricity bill and cost of meter under MAP).

It stated further that customers are to note that VAT is only applicable on the aggregate cost of energy consumed by the customer per time and the cost of the meter and not an increase in the unit cost of electricity or meter. It said the cost of its meter VAT inclusive for single phase meter is N39,765.86 and N72,085.04 for three phase meter. The  Accountant General of the Federation (AGF), Mr. Ahmed Idris, had said the Federal Government has commenced the immediate implementation of some aspects of the Finance Act with the implementation of 7.5 per cent VAT on delayed payments on government transactions.



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