The Minister of Power, Adebayo Adelabu, has stated that the proposed electricity tariff increase will help push Nigeria’s available power generation to 7,000 megawatts (MW).
This comes after the country recorded its highest-ever electricity generation of 6,003MW and a peak evacuation of 5,801.84MW last week.
Why the Tariff Increase?
According to Adelabu’s Special Adviser on Strategic Communication, Bolaji Tunji, the regularization of electricity tariffs is essential to sustaining improvements in power supply and ensuring the sector’s financial stability.
“By the time tariffs are fully regularized, we will be moving closer to 7,000MW of available generation capacity.
This will mark another milestone in our journey toward a stable and efficient power sector,” the minister stated.
The government also needs to cover N1.94 trillion in tariff shortfalls for 2024 and N2 trillion in legacy debts to power generation companies (GENCOs).
The tariff hike is expected to reduce government subsidies and improve liquidity in the power sector.
Impact on Electricity Consumers
The new tariff structure will mainly affect customers in Bands B, C, and D, reducing the price gap between these customers and those in Band A, who already pay higher rates for more reliable electricity.
The Nigerian Electricity Regulatory Commission (NERC) has unveiled a full list of areas in Lagos that will be affected by the tariff increase, ensuring transparency in the process.
Recent Power Sector Achievements
The Ministry of Power has highlighted several recent milestones in Nigeria’s electricity sector, including:
- 6,003MW available generation capacity – the highest in history.
- 5,801.84MW peak evacuation – a record-breaking power transmission figure.
- 128,370.75 megawatt-hours (MWh) daily maximum energy output.
These achievements were made possible through ongoing rehabilitation of transmission and distribution networks, adoption of innovative technologies, and policy reforms aimed at improving efficiency and accountability.
Government Calls for Stakeholder Support
Minister Adelabu urged state governments, private sector players, and consumers to support ongoing reforms, emphasizing that a sustainable power supply is crucial for economic growth and business expansion.
Stay tuned to NIGPOST for more updates on Nigeria’s electricity sector and tariff changes.
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