The Federal Government has reaffirmed its plan to gradually phase out electricity subsidies and introduce cost reflective tariffs across Nigeria’s power sector, while providing support for low income and vulnerable households.
Speaking at the Asharami Square 3.0 event in Lagos, the Special Adviser to the President on Power Infrastructure, Sadiq Wanka, said the transition to cost reflective tariffs is now official government policy and is expected to be implemented nationwide within the next year.
He explained that while Band A customers are already on cost reflective tariffs, the policy will be extended to other electricity users alongside the proposed Power Consumer Assistance Fund, which is designed to cushion the impact on vulnerable households.
Wanka also highlighted the need for increased investment in the power sector, noting that Nigeria currently attracts about one billion dollars annually, far below the estimated 9 billion to 12 billion dollars required each year to improve electricity generation, transmission and distribution.
According to him, the country will need an estimated 121 billion dollars in investment over the next two decades to achieve reliable electricity supply, expand access and support economic growth.
The government said the planned reforms are aimed at creating a more sustainable electricity sector while protecting consumers most affected by higher energy costs.
