By DAYO ADESULU
The Federal Government has reaffirmed its commitment to improving Nigeria’s power sector through a Nigeria electricity tariff increase, which is expected to boost power generation capacity to 7,000 megawatts (MW). The Minister of Power, Chief Adebayo Adelabu, made this revelation following the country’s record-breaking power generation of 5,801.84MW last week.
Nigeria’s Power Generation Hits Record High
According to a statement released by Bolaji Tunji, Special Adviser on Strategic Communication to the Minister, Nigeria’s available power generation recently hit 6,003MW, marking the highest in the nation’s history. This milestone was followed by another peak power evacuation of 5,801.84MW and a daily energy output of 128,370.75 megawatt-hours (MWh).
Chief Adelabu emphasized that sustaining these improvements would require addressing the tariff shortfalls of N1.94 trillion for 2024 and clearing legacy debts of N2 trillion owed to power generation companies (GENCOs).
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“The proposed Nigeria electricity tariff increase is necessary to ensure consumers pay for the energy consumed. By regularizing tariffs, we can unlock the sector’s full potential, improve liquidity, and drive further investments into power generation and distribution,” Adelabu stated.
How Electricity Tariff Increase Will Improve Power Supply
The Minister highlighted that the government’s strategy to increase electricity tariffs for customers in Bands B, C, and D is a crucial step toward bridging the gap between Band A consumers—who currently pay higher rates—and customers in other bands.
“The move will enhance the sector’s liquidity, reduce the government’s subsidy burden, and attract more investments. With the tariff increase, we will be moving towards 7,000MW of available generation capacity, ensuring a more stable and efficient power supply across the country,” Adelabu explained.
Strategic Reforms Driving Growth in the Power Sector
The recent progress in Nigeria’s electricity sector is a result of the government’s strategic reforms, focusing on:
- Upgrading transmission and distribution networks to reduce power losses.
- Implementing innovative technologies to enhance efficiency.
- Introducing policy reforms aimed at strengthening accountability and sustainability.
The Minister attributed the recent milestones to the ongoing efforts of the Federal Ministry of Power, in collaboration with key stakeholders, to optimize the nation’s power infrastructure. He outlined some of the initiatives responsible for these achievements:
- Rehabilitation and upgrading of transmission and distribution networks
- Implementation of innovative technologies to enhance efficiency
- Policy reforms aimed at improving accountability and service delivery
“These achievements are not just numbers; they represent a brighter future for Nigeria where businesses can thrive, households enjoy reliable electricity, and economic growth is accelerated,” the Minister said.
Call for Stakeholder Collaboration
Chief Adelabu emphasized the need for continuous collaboration among stakeholders, including state governments, private investors, and the general public, to sustain the progress made in the power sector.
“We must work together to ensure the momentum is maintained and that the gains made so far are not only sustained but expanded,” he urged.
Conclusion
The proposed Nigeria electricity tariff increase is a bold step toward achieving a more reliable and efficient power supply. With record-breaking power generation figures and ongoing reforms, Nigeria’s electricity sector is poised for transformation.
While the tariff increase may raise concerns among consumers, it is crucial for addressing the industry’s financial challenges and ensuring long-term sustainability. As the government moves closer to 7,000MW of power generation, Nigerians can expect improved electricity access, reduced blackouts, and a stronger economy.
What are your thoughts on the proposed electricity tariff increase? Will it bring about the expected improvements, or will it burden Nigerian consumers further? Share your thoughts in the comments!
Stay updated on Nigeria’s power sector developments by following #NigeriaElectricity, #PowerSector, #ElectricityTariff, and share your thoughts on the electricity tariff increase in the comments section below.
Dayo Adesulu, online editor, SEO expert.
