Nigerians to pay more for electricity, says Presidential aide

Nigeria’s electricity tariff is set to rise within the coming months, according to Olu Verheijen, Special Adviser to President Bola Tinubu on Energy.

Speaking at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, Verheijen emphasized that the increase is necessary to reflect the true cost of electricity supply and improve the nation’s power sector.

Her statement comes months after the Federal Government approved a threefold tariff hike for Band A customers on April 3, 2024. She explained that for many consumers, electricity rates need to rise by about 66 percent to match actual supply costs.

However, she stressed that while higher tariffs are essential for attracting private investment and enhancing power generation and transmission, they must be balanced with subsidies to protect less-affluent Nigerians.

“One of the key challenges we’re working to resolve in the coming months is transitioning to a cost-efficient but cost-reflective tariff,” she said. “This will ensure the sector generates the necessary revenue while safeguarding the poor and vulnerable.”

Verheijen also highlighted Nigeria’s need for substantial investment in the power sector, revealing that out of the country’s 14-gigawatt installed capacity, only eight gigawatts can be transmitted, and just four to five gigawatts reliably reach homes and businesses.

She said that as Nigeria is seeking a long-term solution to its electricity crisis, the upcoming tariff adjustments are expected to be a critical step in improving power supply and attracting much-needed private sector participation.