FG Hints Citizens on Imminent Electricity Tariff Hike
Nigerians should brace for an increase in electricity tariffs, as the Federal Government prepares to implement new cost-reflective pricing to address ballooning subsidy obligations in the power sector.
Minister of Power, Adebayo Adelabu, disclosed this during a meeting with the Chairmen of Nigeria’s electricity generating companies (GenCos) in Abuja. He said the country’s economy is under strain and can no longer sustain the rising cost of electricity subsidies.
“We must recognise that our economy cannot sustain subsidies indefinitely,” Adelabu stated. He revealed that the government currently owes over N4 trillion to GenCos in unpaid subsidy debts and may have to resort to borrowing to offset the liability.
Read Also:
A statement issued by the minister’s spokesperson, Bolaji Tunji, reaffirmed that the new tariffs would reflect the actual cost of power generation and delivery. “Citizens must pay the appropriate price for the energy consumed,” Adelabu was quoted as saying.
However, the minister assured that targeted subsidies will remain in place for Nigerians considered economically vulnerable.
Recent data from the Nigerian Electricity Regulatory Commission (NERC) highlighted the growing gap between electricity production costs and what consumers are charged. As of February 2025, the real cost of electricity stood at N116.18 per kilowatt-hour, while the average consumer tariff was N88.20—creating a subsidy difference of nearly N28 per kilowatt-hour.
NERC noted that all customers in the Nigerian Electricity Supply Industry (NESI)—with the exception of the top 15% (Band A)—are currently benefiting from government subsidies.
As the government moves to restructure the subsidy regime, many Nigerians are concerned about the implications on household expenses and the overall cost of living, especially in the face of inflation and stagnant wages.
By PRNigeria
