The Federal Government has revealed plans to raise electricity tariffs in the coming months, as part of its efforts to create a more sustainable and investment-friendly power sector. This announcement was made by Olu Verheijen, the Special Adviser to President Bola Tinubu on Energy, during the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania.
Verheijen emphasized the need for a balanced tariff adjustment that would allow for cost-reflective pricing while protecting vulnerable consumers through targeted subsidies. She also highlighted Nigeria’s power sector’s need for substantial investment, pointing out that although the country has 14 gigawatts of installed power, only a fraction is available for distribution.
The federal government’s plan to increase tariffs comes after the threefold hike for Band A electricity consumers in 2024, reflecting mounting pressure from electricity distribution companies to make tariffs more financially sustainable. This move aligns with broader efforts by President Tinubu’s administration to attract private investment, improve state finances, and remove fuel subsidies.
Despite these developments, Nigeria still faces significant challenges in achieving widespread electricity access, with approximately 62% of the population currently connected to the grid, which remains erratic.
