The Federal Government has announced plans to increase electricity tariffs in the coming months.
However, it assured that subsidies would be provided to cushion the impact on low-income consumers.
Bloomberg quoted Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, revealing this at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania. Nigeria presented a $32 billion plan to boost electricity access by 2030 at the event.
Verheijen explained that the country is working on transitioning to a cost-reflective tariff to attract private investments while ensuring affordability for vulnerable citizens.
“One of the key challenges we aim to address in the coming months is shifting to a tariff that balances cost efficiency and revenue generation. This will help attract private capital while also protecting low-income consumers,” she said.
Last year, the government approved a threefold tariff hike for Band A electricity users. Now, pressure from Nigeria’s struggling electricity distribution companies is mounting, as they push for cost-reflective tariffs to stabilize their finances.
