Nigerians may soon face another increase in electricity tariffs, as the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has confirmed ongoing plans to adjust power rates.
Speaking at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, Verheijen emphasized the necessity of aligning electricity prices with actual supply costs.
This development comes shortly after the Federal Government approved a threefold increase in electricity tariffs for Band A consumers on April 3, 2024.
According to Verheijen, electricity tariffs in Nigeria must rise by approximately 66% for many users to reflect the true cost of power generation and distribution.
“One of the key challenges we aim to address in the coming months is achieving a tariff system that is both cost-efficient and cost-reflective,” she stated.
She explained that while increasing tariffs is necessary, the government is also committed to maintaining subsidies for low-income households. The goal is to ensure electricity remains accessible while simultaneously funding system improvements, enhancing reliability, and attracting private-sector investment.
Verheijen further highlighted the urgent need for investment in Nigeria’s power sector to improve efficiency and meet the country’s growing energy demands.
She revealed that despite Nigeria having an installed power capacity of 14 gigawatts, only eight gigawatts can be transmitted nationwide, with just four to five gigawatts effectively reaching consumers. This inefficiency underscores the importance of reforms to enhance power generation, transmission, and distribution.
As the government moves forward with its electricity sector reforms, Nigerians should anticipate adjustments in pricing, with a focus on balancing affordability and long-term sustainability.
