Will higher electricity bills solve Nigeria’s power problem?
Nigeria's electricity bills have been silently increasingly

Another month, another not-so-secret electricity tariff hike.

For over two years, power sector tariffs have been going up with little to no notice given to electricity consumers. In the past two years, power sector tariffs have increased from about ₦30/kWh to ₦76/kWh for some consumers, a 150% increase.
 

Key takeaways:

  1. Electricity tariffs in Nigeria have increased again, with some customers paying over ₦70/kWh.

  2. For over six years, electricity tariffs in Nigeria were frozen at about ₦30/kWh, contributing to years of inefficiency in the power sector.

  3. While electricity tariffs must keep increasing till they are cost-reflective, there are still other issues in the power sector that require attention.

 

On the one hand, it’s clear why the power sector has chosen this strategy. The last two times Nigerians were sufficiently pre-warned of an electricity tariff hike, in 2014 and 2020, the Nigerian Labour Congress (NLC) threatened to call nationwide strikes, prompting a

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Noelle Okwedy

Noelle Okwedy

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