by Godwin Orozo-
The Bola Tinubu administration has announced plans for further adjustments to electricity tariffs in the coming months, citing the need to align rates with the true cost of power supply.
Speaking at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, Special Adviser to the President on Energy, Olu Verheijen, emphasized the necessity of the move.
“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,” Verheijen stated.
The planned adjustments follow the Federal Government’s decision on April 3, 2024, to approve a threefold increase in electricity tariffs for Band A customers. According to Verheijen, many consumers will need to pay about 66% more to cover the actual cost of power supply. She also underscored the importance of balancing affordability with sustainability.
“We must ensure that while tariffs increase, subsidies remain in place for low-income consumers,” she noted, stressing that accessibility, system reliability, and private sector investment are crucial to Nigeria’s power sector reforms.
Verheijen further highlighted that attracting significant investment is essential for improving electricity supply and meeting the country’s development goals.
