The federal government says plans are ongoing to increase electricity tariffs “over the next few months”.

It, however, said that the planned increase needed to be balanced by subsidies for less-affluent electricity users.

Bloomberg quoted the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, as giving this hint at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, where Nigeria presented a $32 billion plan to expand electricity connections by 2030.

The fresh move to raise tariffs comes amid mounting pressure from Nigeria’s debt-burdened electricity distribution companies for tariffs to be cost-reflective so they can improve their finances.

Last year, the federal government approved a threefold increase in electricity tariff for customers under the Band A classification.

The Nigerian Electricity Regulatory Commission (NERC) had in April 2024 effected a 300 per cent rise in electricity tariff for Band A customers from N68 KWh to N225KWh.

While making the announcement, the Vice Chairman of NERC, Musliu Oseni, said the increase affected 15 per cent of electricity customers while insisting that the decision was taken to ensure stability in the power sector.

Similarly, the Minister of Power, Adebayo Adelabu, while defending the increase said continuous payment of subsidy for the category would jerk up the government’s subsidy payment to N2 trillion annually if nothing was done.

But the tariff has been reduced since then and currently pegged at N209.50.

On the latest plan to increase the electricity tariff, the presidential aide said Nigeria was trying to resolve the transition to a cost-efficient but cost-reflective tariff to attract private investors.

She said: “One of the key challenges we are looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff.

“So, the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable.”

Increase will not lead to efficient service delivery – Consumers

Meanwhile, the President of Nigeria Consumer Protection Network, Kunle Olubiyo, said no matter the amount of increase in the electricity tariff, it would not result to efficient service delivery.

Speaking with Daily Trust, Olubiyo said the country had witnessed over 500 per cent tariff increase since the sector was privatised but services remained poor in the country.

He said the country continued to grapple with less than 6, 000 megawatt of electricity which is not sufficient to meet the needs of Nigeria’s population.

“The efficiency level is static or stagnated and what we are seeing is that we have seen different demands for increase in electricity tariff over the years from 2013 to date. There have been over 500 per cent increase in electricity tariff and even if electricity tariff is N1, 000 per kilowatt hour, it is not a guarantee for improvement in quality of service or hours of supply of electricity. So, it leaves much to be desired.”

According to him, “In the past, we thought cost reflective tariff will be complementary to service reflective performance but we were wrong. So, we will still be in the same situation. The truth of the matter is that even in band A, that is a major concern and so, the more we are able to have access to rooftop facility, like solar for domestic use, the better and the more we will get more captive or embedded generation for the industrial cluster.”

He added that ineptitude in the sector had made Nigerians familiar with technical terms like line tripping, grid collapse, high current, among others, which is not supposed to be so as Nigerians should have nothing to do with the process of electricity generation.

The Convener of Powerup, Adetayo Adegbemle, also said the planned increment of the tariff is a way of the federal government saying it can no longer foot the bill for electricity consumption in the country.

“This is federal government saying we don’t have money to continue to pay the blanket subsidy. This is not tariff increment. This is just right pricing the products. Everybody has come to terms with buying fuel at the current rate and we are sure that the federal government cannot turn around tomorrow to tell us that they are paying a single dime in subsidy.

“So, what government is just saying now is that, hey, we are tired of paying blanket subsidy. So, what they have done now is, okay, we are going to do right pricing. And we are going to give support of 50 kilowatts per month to Nigerians. So, Nigerians should expect that their first 50 kilowatts in a month is subsidised. But anything you buy after that, you buy it at full cost.”

Source: https://dailytrust.com/FG-plans-fresh-electricity-tariff-hike

Toh

This current government does not care about any service delivery. Their only objective is to find ways to increase everything.
Increasing electricity tariff for distribution companies that cannot effectively meter customers and replace obsolete infrastructure. No single improvement has been witnessed from the increment of last year but another one is here again and the usual lie is subsidy.
Telecom companies too would increase there own, no improvement.

The Lagos landlord is at it again.
High tariff, Tax, Tax and more tax as if Nigeria is not making enough money from exporting crude oil

Is that how that efulefu built and developed Lagos?

helinues:
Toh

6:30AM Monday morning.

CodeTemplar:
6:30AM Monday morning.

So?

helinues:


So?

You are 2 hours 30 minutes late

CodeTemplar:
You are 2 hours 30 minutes late

Stop trolling people.

Is that how everything in life are just so bored to you .

Stop the nonsense trolling jare

https://www.nairaland.com/codetemplar/posts

...and the Great Tinubulation continues.

Thank you Tulumbu, please increase VAT to 15% and add beggars, artisans, motor park louts, peasant farmers and market women to the tax net, they need to start paying tax so that we can increase our IGR to match that of United States, we have the population to generate at least $1trilliin monthly, yes we can do it

Tinubu needs to stop this immediately.....I supported subsidy removal,naira devaluation,telecoms tarrif review,tax reforms.....but this one is a no no!! If it's expedient but the timing is totally wrong.

Nothing that goes up ever comes down in 9ja, come to me, i have the right power solution that meets you needs

Why na!

Band A dey pay 209.5 per Kwh! That one no reach?

Make them stop VAT of electricity!

wetin else dem sabi except plans to make the masses suffer

This government wants to strangulate the already choking Nigerian masses.What a pity,when you elect leaders without compassion and all they ever thinks of,is self,more money,more affluence,more power.
You imagine the speed at which they increase petroleum prices,electricity tariffs,even the telecom sector is not left out.But it took several months discussing the peanuts added for workers as minimum wage and also took several months to implement it,even till date some states have not started paying it.
When I look at the sufferings of the ordinary Nigerians,my heart bleeds!
They succeeded in wiping off the middle class,is either you are rich or have fallen down below the poverty line and this is intentional,so that they can control the masses with just a mudu of rice.It is that bad!!!!

Upon all thie suffering the poor masses are facing. They still want to add to it. The time is far approaching for nigerians to collect the country from the wicked politicians.

I thought phcn has been privatized, who come it federal government that is increasing it?
We know who owns dangote group, we know who owns ibeto company, we know the owner of bet9ja bought a football club in UK,
But we don't know who or the people that bought NEPA till today
Only war can reset this country to default settings

Federal Government only strategy is to throw monies to problem.

As expected, what they get is receipts and Certificate of Job Completion rather than Solution.

These guys should roll up their sleeve to work rather than making Nigerian Pay for their inefficiency

Orisirisi

.

Good move.....electricity pricing must be cost reflective.

Yeye government

Looooooool.. Tinubu till 2098.

Babamide:
This current government does not care about any service delivery. Their only objective is to find ways to increase everything.
Increasing electricity tariff for distribution companies that cannot effectively meter customers and replace obsolete infrastructure. No single improvement has been witnessed from the increment of last year but another one is here again and the usual lie is subsidy.
Telecom companies too would increase there own, no improvement.

Tinubu has said from beginning that he will widen the tax net and reduce purchasing power and people will still go ahead and vote for that bastard come 2027.

Tinubu should bring it on


we know he came to kill and destroy

Lithiumite:
Tinubu needs to stop this immediately.....I supported subsidy removal,naira devaluation,telecoms tarrif review,tax reforms.....but this one is a no no!! If it's expedient but the timing is totally wrong.

With tinubu it's now Nigeria Ltd
He's brought corporate heavyweight predators to come and feast on the carcass of the Nigerian .
He then collects corporate taxes from them
Very sad and evil dude.

2027 is coming we must work together to send the blind bat of bourdilon and his looting croonies back to hell where they belongs

Releex:
Tinubu has said from beginning that he will widen the tax net and reduce purchasing power and people will still go ahead and vote for that bastard come 2027.

Let us not conclude that people voted for him in the last election sef. We all know the man is capable of anything and everything.

Commenting on Nairaland platform is not enough to bring change to this country.
Equally, lamentations would not solve any problems either.
Nigeria problems is beyond theories.

The satanic🤬🤬 govt of SELF SERVING THIEVES AND BLOODTHIRSTY TERRORISTS is about to run mad again!😅😅
The shithole is cursed with insatiable crooks within the corridors of power 💯💯💯