Business

Expect Another Electricity Tariff Hike Within Months- Presidency

The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has announced that Nigeria’s electricity tariff will increase in the coming months.

Speaking at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, Verheijen emphasized the need for higher tariffs to reflect the actual cost of electricity supply. She noted that Nigeria’s power prices must rise by approximately 66% for many customers.

This follows the Federal Government’s decision on April 3, 2024, to triple electricity tariffs for Band A customers.

Verheijen highlighted the importance of balancing tariff hikes with subsidies for low-income consumers. She stressed that increased rates are essential for funding maintenance, improving reliability, and attracting private investment in power generation and transmission.

According to her, Nigeria is working to transition to a cost-efficient yet cost-reflective tariff system to encourage private sector participation.

“One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff.

“So the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable,” Verheijen said.

She also highlighted that Nigeria’s power industry requires significant investment to meet its development goals.

The aide said out of the country’s 14 gigawatts of installed power, only eight gigawatts can be transmitted nationwide, while just four or five gigawatts can be directly delivered to homes and businesses.

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