Nigerian Electricity Rates Still Lowest in West Africa Despite Tariff Hikes, Says DisCos
Despite recent tariff increases, Nigerian electricity distributors claim that Band A customers continue to pay the lowest rates in West Africa. This comes as the government ends subsidies for certain consumers, arguing that the move is essential for the long-term sustainability of the power sector.
The Association of Nigerian Electricity Distributors (ANED) stated that higher electricity rates in neighboring countries allow for better service, as providers can recover costs and reinvest in infrastructure. Even with the tariff hike, Nigerian Band A customers—those receiving at least 20 hours of power daily—still pay less than their counterparts in the region.Currently, Band A customers pay about N209.80/kWh, down from the previous N225/kWh. The government has initiated a gradual shift towards cost-reflective pricing, maintaining that subsidies are no longer viable.
The Power Minister emphasized that this adjustment is aimed at improving service quality for consumers. Meanwhile, ANED pointed out that while Band A customers now pay the true cost of electricity, other bands continue to receive government subsidies of up to 67%.
The tariff hike has sparked public debate, with concerns over rising living costs. However, officials argue that these changes are necessary to strengthen Nigeria’s power sector and ensure better service in the long run.
