Brace Up: You’ll Pay More for Electricity, FG Tells Nigerians

By Tgnews

The Federal Government has announced plans to increase electricity tariffs over the next few months, in a bid to attract private investors and improve the finances of debt-burdened electricity distribution companies.

According to Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, the government is working to transition to a cost-efficient but cost-reflective tariff, which will generate revenue for the sector while protecting the poor and vulnerable.

This move comes after the federal government approved a threefold increase in electricity tariff for customers under the Band A classification last year, with tariffs rising from N66 to N225 kilowatt per hour.

The government is working to transition to a cost-efficient but cost-reflective tariff, which will generate revenue for the sector while protecting the poor and vulnerable

The government has emphasized that the planned increase will be balanced by subsidies for less-affluent electricity users, in an effort to mitigate the impact on low-income households. With Nigeria presenting a $32 billion plan to expand electricity connections by 2030 at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, it remains to be seen how the government will balance the need for cost-reflective tariffs with the need to protect vulnerable consumers.