The Federal Government has announced plans to increase electricity tariffs in the coming months as part of efforts to transition to a cost-reflective pricing system.
Special Adviser to Chief Bola Tinubu on Energy, Olu Verheijen, disclosed this at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania.
She stated that the adjustment aims to generate sufficient revenue to attract private sector investment while ensuring subsidies for low-income consumers.
Verheijen said, “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.”
The move comes amid pressure from electricity distribution companies seeking cost-reflective tariffs to improve their financial stability.
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Recall In 2023, the federal government approved a threefold increase in tariffs for Band A customers. Nigeria also presented a $32 billion plan at the summit to expand electricity access by 2030.
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