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FG plans for almost 300% increase in electricity tariffs soon- Report

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The federal government is planning an almost 300% increase in electricity tariffs in the coming weeks in a bid to attract investment into the sector according to reports from Bloomberg.  

According to the reports, unofficial sources state that electricity firms may hike tariffs for those in urban areas to N200 per kWh, up from N68. Those in urban centres represent just 15% of the population but reportedly consume around 40% of the nation’s power the anonymous source said.  

The Special Adviser to the President on Information and Strategy, Bayo Onanuga told Bloomberg that NERC would announce a price increase soon and the government cannot speak on the matter for now.  

Nigeria operates a fixed tariff system where the federal government sets the price of electricity through the Nigeria Electricity Regulatory Commission (NERC). For 2024, the federal government projected to spend around N1.67 trillion on electricity subsidy- an increase of 170% from the figure spent in 2023.  

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