Minister of Power Adebayo Adelabu has renewed calls for an increase in electricity tariffs, stating that citizens must pay the true cost of energy. At a May 5 meeting with GenCos in Abuja, he emphasized the need for appropriate pricing. Similarly, in February, President Tinubu’s Energy Adviser, Olu Verheijen, highlighted the importance of tariff hikes to improve maintenance, reliability, and attract private investment. Verheijen also acknowledged the challenge of balancing cost-reflective tariffs with the need to protect low-income households through subsidies.
The push for electricity tariff hikes is often presented as a solution to Nigeria’s power sector challenges—and it’s not new. On January 31, 2024, Minister Adelabu proposed a full cost-reflective tariff with zero subsidy, citing that Nigerians pay far less than neighboring countries like Ghana and Ivory Coast. Since May 2023, tariffs have steadily increased, with NERC approving a 300% hike for Band A consumers and a 65% rise for other categories.Calls for higher electricity tariffs persist despite worsening power supply. NERC data shows a decline in electricity generation and distribution in Q4 2024, with generation dropping to 9,289 GWh from 9,450.76 GWh in Q3. DisCos also received less energy, deepening Nigeria’s supply gap.
As a result, households and small businesses rely on costly self-generated power, especially through petrol generators, which bring added financial and health burdens. Reflecting the sector’s poor state, the Presidency allocated N10 billion in 2024 for solar energy, effectively opting out of public power supply.This newspaper urges the Minister of Power to halt plans for tariff hikes and focus on urgently fixing the power sector. Efforts should target real reforms, not added burdens on Nigerians.The minister must prioritize clearing inefficiencies and fast-track the metering of all consumers. Instead of raising tariffs, complete the rollout of smart meters and end estimated billing.As of 2025, 85 million Nigerians still lack electricity, and over 7 million connected users remain unmetered.
The government must urgently expand access and fast-track metering.Instead of raising tariffs, Daily Trust urges the government to protect low-income consumers with targeted subsidies. With its 40% stake in GenCos and DisCos, the state can and should sustain subsidies as a public service.The Ministry of Power must wake up and reconnect with Nigerians. Its duty is to fix decaying infrastructure—not chase tariff hikes.The focus should be on real reforms, not empty promises. With just 13,435 MW installed, 5,528 MW available, and only 4,500 MW distributed, the priority must be expanding capacity and delivery, not raising costs.
