Brace Up for Fresh Electricity Tariff Hike – FG

The Federal Government has announced plans to increase electricity tariffs in the coming months, emphasizing the need to balance higher costs with subsidies for low-income consumers.

Speaking at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, highlighted Nigeria’s efforts to transition to a cost-reflective electricity tariff system. The move, she explained, is aimed at attracting private investment while ensuring affordability for the nation’s most vulnerable citizens.

“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 stated. “This will enable the sector to generate the revenue required to attract private capital while also protecting the poor and vulnerable.”

The government’s push for a tariff hike follows last year’s approval of a threefold increase in electricity rates for customers under the Band A classification. Meanwhile, Nigeria’s electricity distribution companies, burdened by mounting debt, continue to demand cost-reflective tariffs to stabilize their finances.