Prepare for Higher Electricity Bills: Nigerian Government Warns of Tariff Hike

Electricity Costs Rising: FG Announces New Tariff Hike for Nigerians

The Federal Government of Nigeria has announced plans to increase electricity tariffs in the coming months to better reflect the actual cost of power production.

Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, stated that for many consumers, electricity prices may need to rise by approximately 65% to align with supply costs. She emphasized the importance of transitioning to a cost-reflective tariff system to improve service reliability and attract private investment in the power sector.

To mitigate the impact on less-affluent consumers, the government plans to implement subsidies, ensuring that vulnerable populations are protected during this transition. This move comes less than a year after the Nigerian Electricity Regulatory Commission (NERC) raised tariffs by more than 300%, amid rising living costs.

The proposed tariff adjustment is part of the government’s broader strategy to enhance Nigeria’s economic standing, with ambitions to become a $1 trillion economy in five years and achieve upper-middle-income status within 25 years.