The federal government plans to raise electricity tariffs in the coming months while maintaining subsidies for low-income consumers. Speaking at the Africa Heads of State Energy Summit in Dar es Salaam, Special Adviser on Energy, Olu Verheijen, said the move is necessary to offset rising operational costs and attract private investment.
Verheijen noted that although current rates were recently reduced to N209.50 per kWh, further adjustments are needed for a cost-reflective pricing model. To protect the poor, the government will continue to subsidize the first 50 kilowatts of monthly consumption.
However, consumer advocates remain skeptical. Kunle Olubiyo of the Nigeria Consumer Protection Network warned that past tariff hikes have not translated into improved service delivery, citing persistent power shortages. The government maintains that the new pricing strategy is essential to ease the subsidy burden and create a more sustainable power sector.
