Economy

Nigeria urges citizens to brace for electricity tariff hikes amid worsening power woes

Date: May 5, 2025

This is part of a broader economic reform strategy intended to attract investment into the country’s struggling power sector.

Speaking to Channel Africa, correspondent Jonathan James Mlyanggo said the news has been met with frustration by many Nigerians. 

The general spirit by which the news is greeted here is one that echoes the famous phrase: 'if it's not one thing, then it's another'," he said.

Many consumers already feel they are paying exorbitant rates for unreliable power. "People are paying more, but still not getting the hours of electricity they pay for," said Mlyanggo, citing frequent power outages, damaged infrastructure, and slow repairs. He added that some areas go for days or even weeks without restoration after storm-related damage.

The government’s current tariff model categorises users into bands, with Band A users, who receive over 20 hours of power daily  facing the steepest hikes. Bands B and C receive fewer hours of electricity, yet concerns remain about fairness and reliability across all categories.

Mlyanggo noted that the hike follows multiple collapses of the national grid, further shaking public trust. "Just within the past year, the national grid has collapsed more than five times," he said.

Nigeria’s Minister of Power, Adebayo Adelabu, defended the decision, stating that “Nigerians can no longer continue to enjoy an unrealistic cost of power.” He added that the country must move toward “a real, reflective cost of power.”

However, business owners are increasingly opting out of the national grid altogether. Some companies have resorted to gas-powered generators, while others have relocated outside the country altogether due to high operating costs.

The government insists that subsidy reform and tariff adjustments are necessary to improve long-term service delivery and encourage private investment. Yet critics argue that the structural problems, including distribution inefficiencies and maintenance delays, must be fixed first.

The consumer always ends up paying more, and if these issues persist, we will continue to see job losses, reduced investor confidence, and less revenue for the government.


--ChannelAfrica--

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