The Federal Government has announced that plans are underway to increase electricity tariffs “over the next few months.”
However, it emphasised that this proposed hike must be accompanied by subsidies for lower-income electricity users.
Bloomberg reported that Olu Verheijen, the Special Adviser to President Bola Tinubu on Energy, made this statement at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, where Nigeria unveiled a $32 billion plan to expand electricity connections by 2030.
According to the presidential aide, Nigeria aims to navigate the transition to a cost-efficient yet cost-reflective tariff system to attract private investment.
She stated: “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.
“So the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable.”
Last year, the federal government approved a threefold increase in electricity tariff for customers under the Band A classification.
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.