Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, has announced that Nigeria’s electricity tariff will increase within the coming months. She made this disclosure at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania.
This follows the Federal Government’s recent approval of a threefold tariff hike for Band A customers on April 3, 2024.
The upcoming adjustment signals further changes in Nigeria’s energy pricing structure, aimed at addressing the financial challenges in the power sector. However, it has raised concerns about the impact on consumers already grappling with rising living costs.
The announcement underscores the government’s efforts to stabilize the power sector while balancing public affordability.
According to the presidential aide, Nigeria’s power prices need to rise by about two-thirds (66 percent) for many customers to reflect the actual cost of supplying electricity.
She also stressed that higher electricity tariffs must be balanced with subsidies for less-affluent consumers, as they are necessary to fund maintenance, improve reliability, and attract private investors into power generation and transmission.
The presidential aide said Nigeria is trying to resolve the transition to a cost-efficient but cost-reflective tariff to attract private investors.
“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.