The federal government has revealed continuous plans to increase electricity rates “in the coming months.”
President Bola Tinubu's special advisor on energy, Olu Verheijen, declared this at the Energy Summit of the Heads of State of Africa in Dar Es Salaam, Tanzania, where Nigeria presented a plan of $ 32 billion to expand the electrical connections for 2030.
However, he said that the planned increase should be balanced with the subsidies for less tributary electricity users.
Verheijen said that Nigeria's energy industry needs a significant investment to achieve its development goals.
Of the 14 gigawatts of installed power of the country, only 8 gigawatts can be transmitted throughout the country and only four or five gigawatts can be delivered directly to homes and businesses, he said.
According to the presidential assistant, Nigeria is trying to solve the transition to a profitable but reflected cost of costs to attract private investors.
She said: “One of the key challenges we are looking for in the coming months is the transition to a profitable but reflected cost.
“Therefore, the sector generates necessary income to attract private capital, while protecting the poor and vulnerable.”
Last year, the Federal Government approved a triple increase in the electricity rate for customers under the classification of band A.
The measure to increase tariffs occurs in the midst of the growing pressure of Nigeria's debt electricity distribution companies so that tariffs are reflected in the cost so that they can improve their finances.
Tinubu has already taken several measures to relieve the burden of state finances and encourage private investment since he assumed the position in May 2023, including the elimination of fuel subsidies.
While Nigeria, a nation of approximately 237 million people, has an electricity access rate of around 62%, an erratic network supply limits productivity and interrupts daily life.
Also read of Nigerian tribe
Tinubu reaffirms the commitment to universal electricity access by 2030