Olu Verheijen, President Bola Tinubu’s Special Adviser on Energy, has stated that Nigerians will experience an electricity tariff increase in the months to come.
Verheijen announced this at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania.
She further stated that the electricity tariff in Nigeria needs to go up to about 66% for customers to match the actual cost of supplying electricity.
The presidential aide also emphasized the need for higher electricity tariff prices to equal the subsidy being deployed for lower-income consumers, as they are necessary to fund maintenance, improve reliability, and attract private investors into power generation and transmission.
She further stressed that Nigeria is trying to migrate to a more cost-efficient but cost-reflective electricity tariff to attract private investors.
Verheijen said, “One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff.
“So the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable.”
Nigeria’s power sector needs a huge influx of investment to meet its development goals. Currently, out of the 14 gigawatts, only 8 gigawatts can be transmitted nationwide, and the rest are delivered to homes and offices directly, she stated.
Naijaeyes report
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