The Nigerian Federal Government plans to increase electricity tariffs over the next few months, aiming for a cost-efficient and cost-reflective system to attract private investment. However, there will be subsidies for lower-income users. This follows a previous tariff hike in 2024, amid ongoing energy sector challenges.
The Nigerian Federal Government has announced plans to increase electricity tariffs in the coming months. Special Adviser to the President on Energy, Olu Verheijen, discussed this at the Africa Heads of State Energy Summit, highlighting the need for a cost-efficient tariff system to attract private investment. However, the government aims to balance the tariff increase with subsidies to protect low-income users.
This announcement comes a year after a major tariff hike for Band A electricity consumers. Critics of the government have expressed dissatisfaction, citing the ongoing energy challenges and lack of consistent power supply, despite efforts to secure financing for the energy sector.
