The Federal Government has announced plans to implement a fresh increase in electricity tariffs in the coming months.
The decision is part of an effort to transition to a more cost-reflective pricing model that will attract private investment into the power sector.
The government, however, emphasized the need to balance the proposed tariff hike with subsidies to protect low-income electricity consumers.
This was disclosed by the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania.
During the summit, Nigeria presented a $32 billion plan aimed at expanding electricity connections across the country by 2030.
Verheijen highlighted that one of the key challenges the government seeks to address is ensuring that the electricity sector generates sufficient revenue while safeguarding vulnerable consumers from excessive costs.
The proposed tariff increase comes on the heels of last year’s threefold hike in electricity prices for customers under the Band A classification.
Meanwhile, Nigeria’s electricity distribution companies, burdened with mounting debt, have been pushing for cost-reflective tariffs to enhance their financial stability.
As discussions continue, the government’s approach will be closely watched by consumers and investors alike, given the potential impact on households and businesses nationwide.
