By Abubakar Yunusa
The federal government has announced plans to increase electricity tariffs in the coming months while ensuring that subsidies remain in place for lower-income consumers.
Speaking at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, said the move was part of efforts to transition to a cost-reflective tariff system that would attract private investment.
“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,” she said.
“This will help the sector generate the revenue required to attract private capital while also protecting the poor and vulnerable.”
Nigeria presented a $32 billion plan at the summit aimed at expanding electricity connections by 2030.
The country has long struggled with inadequate power supply, with frequent blackouts affecting businesses and households.
The proposed tariff hike comes as Nigeria’s debt-laden electricity distribution companies push for a pricing system that reflects operational costs. Many of these companies argue that without such reforms, they will be unable to improve service delivery or attract further investment.
Last year, the government approved a threefold increase in tariffs for Band A customers—those who receive at least 20 hours of electricity daily. The latest move suggests a broader adjustment may be on the horizon.
While the government is keen on making the electricity sector more financially viable, concerns remain about the impact of higher tariffs on consumers already struggling with the rising cost of living.
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