Nigerians should brace for another increase in electricity tariffs in the coming months, as the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has confirmed plans to adjust power prices upward.
Verheijen made the disclosure while speaking at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania.
This follows the Federal Government’s approval of a threefold increase in electricity tariffs for Band A customers on April 3, 2024.
According to the presidential aide, Nigeria’s electricity tariffs need to rise by about two-thirds (66%) for many consumers in order to reflect the true cost of supplying electricity.
“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,” Verheijen said.
She explained that a balance must be struck between increasing tariffs and maintaining subsidies for low-income consumers, ensuring that electricity remains accessible while also funding system maintenance, improving reliability, and attracting private investors.
Verheijen highlighted that Nigeria’s power industry requires significant investment to function optimally and meet the country’s development goals.
She pointed out that out of Nigeria’s 14 gigawatts of installed power capacity, only eight gigawatts can be transmitted nationwide, while just four to five gigawatts actually reach homes and businesses.
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