The Federal Government has announced that electricity tariffs will increase again in the coming months as part of efforts to make the power sector more cost-efficient.
Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, revealed this plan during the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania. She explained that the government is working on transitioning to a pricing system that covers electricity production costs while still ensuring subsidies for low-income consumers.
“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. “So the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable.”
This announcement comes just months after the federal government approved a threefold increase in electricity tariffs for customers under the Band A classification. The Band A category includes consumers who enjoy up to 20 hours of electricity daily.
The planned increase is also a response to growing pressure from Nigeria’s electricity distribution companies. Many of these firms are struggling with huge debts and insist that tariffs must be adjusted to reflect the true cost of electricity supply.
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In addition to the proposed tariff hike, Nigeria presented a $32 billion plan at the summit to expand electricity connections by 2030. The initiative aims to boost power generation and distribution across the country.
The new tariff adjustment, if implemented, will affect millions of Nigerians who are already dealing with rising costs of living. Many consumers have previously criticized electricity price hikes, arguing that they do not get enough supply to justify the high bills.
Residents of the Federal Capital Territory (FCT) have also raised concerns about power issues, recently demanding the quick relocation of a transmission tower affecting electricity supply in parts of Abuja.
While the government insists that higher tariffs will attract private investors and improve service delivery, many Nigerians remain skeptical. The coming months will determine how the government balances the need for investment with the economic realities faced by citizens.