The Minister of Power, Adebayo Adelabu, in a statement signed by his spokesperson, Bolaji Tunji, on Monday said the new tariffs will reflect the true costs of electricity.
Adelabu during a meeting with the Chairmen of Nigeria’s Generating Companies (GenCos) in Abuja said the country’s economy can no longer afford to pay for electricity subsidies.
“We have to understand that our economy cannot sustain subsidies indefinitely,” the minister said, adding that the FG presently has an outstanding debt exceeding N4 trillion to GenCos for overdue subsidy payments.
Tunji also quoted Adelabu as saying during his meeting with the GenCos that, “Citizens must pay the appropriate price for the energy consumed.
“The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians,” the minister said.
Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) in its performance report for February 2025 said the average real tariff stands at N116.18 per kilowatt-hour, whereas consumers are charged N88.2 per kilowatt-hour.
“In February, the subsidy cost per kilowatt-hour was represented by the gap between the real tariff and the average collection, which amounted to N27.97 kWh,” NERC said, adding that all NESI customers, except for the 15 percent classified as Band A, benefit from a subsidy.
