- The Minister of Power, Adebayo Adelabu, announced the tariff hike plan during the public presentation of the National Integrated Electricity Policy (NIEP) in Abuja.
- The proposed tariff adjustment targets a cost-reflective pricing model to attract investment, improve infrastructure, and enhance service delivery.
Nigeria’s electricity sector is again at the centre of national debate as the Nigerian Electricity Regulatory Commission (NERC) pushes for a tariff hike. During the public presentation of the National Integrated Electricity Policy (NIEP) in Abuja, the Minister of Power, Adebayo Adelabu, announced the tariff hike plan.
This move, aimed at addressing the power sector’s financial viability, has sparked strong opposition from labour unions and consumers already burdened by unreliable supply and high costs of self-generation.
Despite its vast energy resources, Nigeria grapples with persistent power shortages, forcing many businesses and households to rely on expensive alternatives such as diesel generators and solar systems. The country’s electricity deficit has long been a paradox, with successive governments failing to deliver stable power despite multiple reforms and privatisation efforts.
NERC argues that the proposed tariff adjustment is necessary to ensure a cost-reflective pricing model that would attract investment, improve infrastructure, and enhance service delivery. Proponents of the hike believe that without realistic pricing, the power sector will remain financially unsustainable, leading to further grid collapses and stalled expansion projects.
Industry analysts point out that Nigeria’s current electricity tariffs are among the lowest in Africa, making it difficult for power distribution companies (DisCos) to cover operational costs.
“The sector needs financial stability to function efficiently. Tariff adjustments, if properly implemented, could help fund critical upgrades and reduce the dependence on government subsidies,” said an energy expert familiar with the situation.
However, the proposed hike has been met with fierce resistance from the Nigeria Labour Congress (NLC), which threatens mass protests and a possible nationwide strike if the government proceeds with the plan. The NLC argues that increasing electricity costs without first ensuring a stable and reliable supply is unfair to consumers who already pay for power they barely receive.
“Nigerians are being asked to pay more for darkness,” a spokesperson for NLC stated. “Before any tariff hike, there must be a demonstrable improvement in electricity supply. We cannot continue to accept policies that burden citizens while service delivery remains poor.”
Many Nigerians also express frustration over the sector’s lack of transparency and accountability. Previous tariff increases have not translated into significant improvements, leading to widespread scepticism about whether the latest adjustment will yield any benefits.
With rising public discontent and threats of industrial action, the government faces a tricky balancing act—addressing the financial challenges of the power sector while preventing further economic hardship on already struggling citizens.
As negotiations continue, the outcome of this debate could shape the future of Nigeria’s electricity industry and its broader economic stability.