Electricity Tariff Hike: Why Nigerians Might Pay More

Nigerians may soon be paying more for electricity as the federal government pushes for tariffs that reflect the true cost of power. The Minister of Power, Adebayo Adelabu, says the country’s economy can no longer sustain broad electricity subsidies, especially with the government’s debt to power-generating companies (Gencos) now exceeding N4 trillion.

Currently, the actual cost of electricity stands at N116.18 per kilowatt-hour, but consumers are charged an average of N88.2, with the government covering the difference. However, this model is becoming unsustainable, and changes are imminent.

What the Minister of Power Is Saying

At a meeting with Genco executives in Abuja, Minister Adelabu emphasized the need for Nigerians to begin paying the correct price for electricity. He explained that subsidies would become more targeted — focusing on economically vulnerable groups — rather than applied across the board.

“We have to understand that our economy cannot sustain subsidies indefinitely,” he said. “Citizens must pay the appropriate price for the energy consumed.”

What People Are Saying

Reactions from Nigerians have been mixed — ranging from frustration over high costs and poor service to cautious optimism about reforms.

Consumers in Band A, who are already paying cost-reflective tariffs, say the price is high and yet doesn’t always guarantee reliable supply. “We’re charged more, but service is still inconsistent,” a Lagos resident said.

For many in Bands B to E — where subsidies still apply — concerns are rising over whether the quality of service justifies any proposed increase. One user shared, “We get 10 to 12 hours of electricity a day. Asking us to pay more with no improvement in service feels unfair.”

Others expressed the impact on their daily lives. “Electricity hasn’t improved but it’s more costly. I can’t run my appliances, and business expenses are rising. Even solar alternatives are now expensive,” said a small business owner.

Some have adjusted their usage to cope. “We now use energy-saving bulbs, run freezers only at night, and have stopped using air-conditioners completely,” one respondent shared.

A few highlighted deeper concerns with how the electricity sector is managed. “This hike won’t fix anything if the Discos remain understaffed and poorly managed. There’s too much corruption in the system,” someone noted.

Still, a handful of Nigerians see potential benefits — if reforms are properly managed. “It’s helped me cut energy waste. But the government must invest in better infrastructure, and Discos need to upgrade their distribution systems,” one respondent suggested.