Nigerians are set to face a steep rise in electricity tariffs as the Federal Government moves to eliminate power subsidies. The planned hike, which could increase rates by over 66%, has sparked widespread concerns among consumers.
Currently, electricity costs N116.18 per kilowatt-hour for subsidized users, but this is expected to rise to N193.63. Those on Band A already pay N209 per kWh, receiving at least 20 hours of daily power. Consumers on lower bands, who get fewer hours of electricity, fear they will pay more without a corresponding improvement in supply.
FG Defends Tariff Increase
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, confirmed the planned hike, stating that electricity tariffs must reflect the true cost of supply. Speaking at the Mission 300 Energy Summit in Tanzania, she said, “Higher tariffs are necessary to fund maintenance, improve reliability, and attract private investment.”
Nigeria generates 14 gigawatts (GW) of electricity, but only 4-5GW is delivered to homes and businesses. The government argues that increasing tariffs is the only way to ensure stable electricity supply.
A senior official at the Nigerian Electricity Regulatory Commission (NERC) said, “The government can no longer afford subsidies. A cost-reflective tariff is inevitable.”
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Many Nigerians have rejected the planned increase, arguing that power supply remains unreliable. Adeola Samuel-Ilori, Coordinator of the Electricity Consumers Protection Forum, questioned why the government is increasing tariffs when many consumers still lack prepaid meters.
“There is a law requiring DisCos to provide free meters, but consumers are still forced to buy them,” he said. “The government keeps making promises, yet we continue paying for darkness.”
Sunday Oduntan, Executive Director of the Association of Nigerian Electricity Distributors, revealed that the government is defaulting on its subsidy payments. “Only Band A customers pay the full cost of electricity, while others receive a 67% subsidy. However, the government is not fulfilling its payment promises, causing financial strain on DisCos.”
Businesses and Households Feel the Pressure
With power supply remaining below 5,000 megawatts and frequent grid collapses, many businesses have abandoned the national grid, relying on private power generation. Over 250 companies and institutions now produce their own electricity.
Princewill Okorie, Executive Director of the Consumer Protection Advocacy Centre, warned that the hike would worsen economic hardship. “Many Nigerians cannot afford this. Businesses are closing due to high costs, yet the government wants us to pay more for unreliable electricity.”
Government: “No Immediate Hike, But It’s Coming”
While the Ministry of Power has not officially announced the date for the new tariffs, officials confirm that a review is inevitable. Special Adviser to the Minister of Power, Bolaji Tunji, said, “A cost-reflective tariff is desirable, but there are no immediate plans for an increase.”
Meanwhile, power sector expert Tayo Adegbenle supports the hike, arguing that subsidies have prevented investment in the sector. “If we want reliable electricity, we must allow tariffs to reflect market realities,” he said.
For now, millions of Nigerians remain in the dark—both literally and figuratively—on when the new tariffs will take effect and whether they will see any improvement in power supply.
