The Federal Government’s reported plan to increase electricity tariffs across customer bands has continued to attract criticism from electricity consumers and industry stakeholders, who argue that the move is unjustified given the country’s persistent power supply challenges.
The controversy follows reports that the government is considering a phased electricity tariff increase across all customer categories.
President Bola Tinubu’s Special Adviser on Power Infrastructure, Sadiq Wanka, had indicated that electricity tariff adjustments for all bands would be implemented gradually.
Although the Presidency later denied reports of an imminent tariff hike, concerns remain that such an increase could still be introduced.
Many electricity consumers insist that the government should prioritise improving electricity supply before considering any further tariff review.
They argue that the Tinubu administration has yet to deliver significant improvements in the power sector despite promises made before the 2023 general election.
Nigeria’s electricity generation continues to fluctuate between 3,500 and 4,500 megawatts, a level that has remained largely unchanged since 2023 despite serving a population of more than 200 million people.
In April 2024, the Federal Government approved an almost 300 per cent increase in electricity tariffs for Band A customers, who were expected to receive a minimum of 20 hours of electricity daily.
However, many consumers have continued to complain about unreliable power supply, including those classified under Band A.
Beyond rising tariffs, households and businesses have also continued to grapple with frequent blackouts and, in many communities, residents are still compelled to contribute funds to purchase transformers that are later transferred to electricity distribution companies (DisCos).
Fresh speculation surrounding another tariff adjustment under the Minister of Power, Joseph Tegbe, has further heightened public anxiety.
Speaking on the development, the National President of the Nigeria Consumer Protection Network, Kunle Olubiyo, and the Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, criticised the government’s handling of the power sector.
Nigeria’s electricity market still plagued by structural problems — Olubiyo
Olubiyo argued that the current structure of Nigeria’s electricity industry cannot deliver sustainable improvements, describing the country’s 13-year power sector privatisation as unsuccessful.
According to him, the market remains burdened by financial leakages, weak accountability and policy inconsistencies that discourage investment.
He also faulted the government’s handling of electricity subsidies, noting that while authorities repeatedly commit to funding subsidy obligations, payments are often delayed or not made at all, creating financial strain across the power value chain.
Olubiyo further maintained that Nigeria does not yet have a properly functioning electricity market capable of attracting long-term investors due to uncertainty over investment recovery.
He also criticised the continued operation of the Nigerian Bulk Electricity Trading Plc (NBET), saying the agency was originally created as a temporary stabilisation mechanism during the privatisation process.
According to him, persistent challenges such as inadequate metering, manual energy accounting and excessive human interference have contributed to inaccurate billing and financial losses within the sector.
He urged the Federal Government to implement deeper reforms similar to those introduced in the foreign exchange and downstream petroleum sectors by reducing direct financial intervention and allowing a more transparent electricity market to emerge.
Proposed tariff hike will deepen economic hardship — Okorie
Also reacting, electricity consumer advocate Princewill Okorie opposed any attempt to remove electricity subsidies or increase tariffs without noticeable improvements in service delivery.
He questioned the justification for extending the current Band A pricing model to other customer categories while millions of Nigerians continue to experience poor electricity supply.
According to him, discussions about subsidy removal should begin with an honest assessment of the quality of electricity being provided to consumers.
Okorie argued that another tariff increase would only worsen the economic difficulties facing Nigerians without addressing the underlying problems in the sector.
He also called for an independent audit of investments made by electricity distribution companies, as well as funds injected into Nigeria’s power sector by development partners, including the World Bank, GIZ and other international organisations.
The consumer advocate further questioned whether those funds had been effectively utilised to improve electricity infrastructure and service delivery.
Drawing comparisons with the removal of fuel subsidies, Okorie said many Nigerians are yet to experience any meaningful improvement in their standard of living despite paying higher energy costs.
He also criticised the composition of government committees on power sector reforms, arguing that electricity consumers are often excluded from policy discussions even though they bear the financial consequences of decisions made within the sector.
