Why Electricity Tariffs Will Drop Soon – Power Minister Explains

Nigeria’s Power Minister reveals the reasons behind the expected drop in electricity tariffs, citing improvements in power generation and distribution. Learn more about the factors driving this change.

Adebayo Adelabu, the Minister of Power, has suggested that the country’s enhancements in power generation and distribution might soon result in lower electricity tariffs.

Adelabu delivered the positive news during a meeting with Mr. Tosin Adeyanju, the Executive Secretary of the National Lottery Trust Fund.

According to a statement issued on Thursday by Mr. Bolaji Tunji, the Minister’s Special Adviser on Strategic Communication and Media, approximately 40% of consumers are now benefiting from a significant amount of electricity as Nigeria produces an average of 5,500 megawatts (MW).

Presently, due to the Federal Government’s decision to eliminate electricity subsidies in Band-A, consumers are now billed N206.5 per kilowatt-hour (kWh). This policy is designed to guarantee a minimum of 20 hours of power supply daily.

Adelabu highlighted that “electricity in Nigeria is the cheapest when compared to other African nations like Togo, Mali, and Niger Republic.” Nonetheless, he recognized that the expense seems heavy due to the lower income levels of Nigerian consumers.

READ ALSO: Power Minister Adelabu Announces Nigeria Generated 5,000MW in May

He added, “Using electricity remains significantly more cost-effective compared to relying on petrol or diesel-powered generators, particularly given the current fuel prices.”

Looking forward, the Minister conveyed optimism by stating, “There is potential for a decrease in the current tariff as generation and distribution keep expanding.”

Meanwhile, Adeyanju commended the minister for his efforts over the past year, lauding his skill and commitment to revitalizing the power sector.

“I want to praise you as a minister who is actively striving to enhance the power sector. Since 1999, we haven’t witnessed this degree of advancement in electricity supply. Previously, many Nigerians relied on solar energy because of inconsistent power, but under your leadership, public trust has been restored,” noted Adeyanju.

He also informed the Minister that, aligning with President Bola Tinubu’s Renewed Hope Agenda, the agency is dedicated to empowering young people—especially in rural regions—by training them to assemble one kilowatt of solar energy.