The power supply in Nigeria has been appalling lately.
Not that it was ever great, but it’s worse than usual. But this time, excuses and explanations from the Ministry of power and the Nigerian electricity regulatory commission (NERC) won’t cut it.
Key takeaways
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The service-based tariff (SBT), introduced in September 2020, is the most significant power sector reform since privatisation in 2014. It allows distribution companies to charge tariffs based on the number of hours of electricity customers get.
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Like privatisation, implementation issues have significantly affected the SBT’s success.
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But, despite the SBT’s shortcomings, there has been some improvement in the power sector’s performance and liquidity situation.
Against the backdrop of Nigeria’s persistent power problems, the Service-Based Tariff (SBT) was rolled out in September 2020. It was supposed to be a new era for the Nigerian electricity supply industry (NESI). It was the first major reform in the power sector
