The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has stated that Nigeria’s electricity tariff will increase within months.
She made this announcement at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania.
Recall that on April 3, 2024, the Federal Government approved a threefold increase in electricity tariffs for customers under the Band A classification.
According to Verheijen, Nigeria’s power prices need to rise by about two-thirds (66 percent) for many customers to reflect the actual cost of supplying electricity.
She emphasized that higher electricity tariffs must be balanced with subsidies for less-affluent consumers, as these are necessary to fund maintenance, improve reliability, and attract private investors into power generation and transmission.
Verheijen added that Nigeria is working on resolving the transition to a cost-efficient yet cost-reflective tariff system to help attract private investment.
“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.
“So the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable,” Verheijen said.
Verheijen also highlighted that Nigeria’s power industry requires significant investment to meet its development goals.
She mentioned that out of the country’s 14 gigawatts of installed power capacity, only eight gigawatts can be transmitted nationwide, while only four or five gigawatts can be directly delivered to homes and businesses.
