Nigeria’s electricity tariffs will increase within months, according to Olu Verheijen, special adviser to President Bola Tinubu on energy. She made the announcement at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, as reported by Bloomberg on Friday.
On April 3, 2024, the Nigerian government approved a threefold increase in electricity tariffs for Band A customers. Verheijen stated that power prices must rise by about two-thirds (66%) for many consumers to reflect the true cost of electricity supply. She stressed that while higher tariffs are essential for funding maintenance, improving reliability, and attracting private investment, subsidies must be maintained for less-affluent consumers.
Transitioning to Cost-Reflective Tariffs

Verheijen said Nigeria is working towards implementing cost-reflective electricity pricing to encourage private sector investment.
“One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff,” she said. “So the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable.”
She highlighted the need for significant investment in Nigeria’s power sector, noting that out of the country’s 14-gigawatt installed capacity, only eight gigawatts can be transmitted, while just four to five gigawatts reach homes and businesses.
“Your energy policies have to be closely linked with your own ambition for your country,” Verheijen said. “Our own ambition is to be a $1 trillion economy in five years and to move to an upper-middle income country in 25 years.”
At the World Bank-backed conference in Tanzania, Nigeria presented a $32 billion plan to expand electricity access by 2030. The report stated that private investors are expected to contribute $15.5 billion, while the remainder will come from public sources, including the World Bank and the African Development Bank (AfDB).