- Minister of Power Adebayo Adelabu claims Nigeria has the cheapest electricity prices in Africa, urging citizens to trust the government’s efforts in energy security.
- His remarks come amid rising energy costs. Electricity rates were set at N209.5 per kilowatt-hour as of July 1, 2024, following a significant tariff hike earlier this year.
The Minister of Power, Adebayo Adelabu, recently stated that electricity prices in Nigeria are among the lowest in Africa. He made this claim during a meeting with Tosin Adeyanju, the Secretary of the Lottery Trust Fund, at his office in Abuja earlier this week.
Adelabu highlighted that Nigeria, like many countries worldwide, is grappling with two critical issues: food security and energy security. “Today, we are confronted with two fundamental challenges, food and energy security,” he stated, emphasising the government’s focus on these areas. He reiterated that the price of electricity remains cheaper in Nigeria than in other African nations, encouraging Nigerians to be patient and trust that the government is acting in their best interests.
Adeyanju’s visit was primarily to discuss potential collaborations in solar energy initiatives, which align with the government’s goal of increasing renewable energy sources. As Nigeria seeks to diversify its energy mix, partnerships in solar energy are seen as a viable solution to improving access to electricity, particularly in underserved areas.
However, Adelabu’s optimistic assessment comes when many Nigerians face rising energy costs across various sectors, including petrol, diesel, and electricity. Effective July 1, 2024, electricity distribution companies in Nigeria set their rates at N209.5 per kilowatt-hour for customers in Band A, who receive 20-22 hours of service daily. This change follows a dramatic tariff hike approved by the Nigerian Electricity Regulatory Commission (NERC) on April 3, which raised electricity prices by 240 per cent from N66 to N225 per kilowatt-hour.
Comparative data reveals that electricity costs in neighbouring countries vary significantly. In Senegal, the rate is N296.10 per kilowatt-hour, while Togo charges N353.68, higher than Nigeria’s current rate. In contrast, electricity prices are lower in Ivory Coast at N195.76 per kilowatt-hour and in Ghana at N205.62 as of April 2024.
These figures underscore the complexities of the energy landscape in Nigeria and the challenges consumers face. While Adelabu’s statements aim to reassure the public about the government’s commitment to energy affordability, many Nigerians remain concerned about the rising costs they are experiencing. As the country continues to navigate these challenges, focusing on renewable energy sources like solar could enhance energy access and sustainability in the long run.