The Federal Government has announced plans to raise electricity tariffs in the near future, aiming for a cost-reflective pricing model to encourage private investment in the power sector.
Olu Verheijen, the Special Adviser to the President on Energy, shared this information at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, where Nigeria unveiled a $32 billion initiative to expand electricity connections by 2030.
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Verheijen highlighted that although tariffs would be adjusted to match actual costs, the government aims to mitigate the impact on low-income individuals through targeted subsidies.
She stated, “One of the main issues we’re addressing in the coming months is shifting to a cost-efficient yet cost-reflective tariff system,” adding that this approach would generate the necessary revenue for attracting private capital while also protecting vulnerable populations.
This planned tariff increase follows the government’s decision last year to approve a threefold rise in electricity rates for Band A customers.
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