Nigerians Oppose Proposed Electricity Tariff Hike Amid Growing Concerns Over Affordability
- The federal government is bent on withdrawing electricity subsidies and raising tariffs for Nigeria
- The minister for power, Adebayo Adelabu, said that the government cannot continue to spend over N2 billion monthly on subsidies
- But Nigerians are standing their ground to oppose another tariff hike, and the reasons have emerged
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Amid ongoing discussions about a potential hike in electricity tariffs, Nigerians have expressed strong opposition.
The federal government recently reiterated its commitment to reducing electricity subsidies and increasing tariffs across various bands.
According to the federal minister for power, Adebayo Adelabu, the current tariffs are not cost-reflective except for band A consumers, from whom electricity distribution companies make some profit.
Source: Twitter
The minister noted that the government still subsidises more than 70% of electricity costs for nearly 85% of consumers in Nigeria, spending over N200 billion monthly.
Despite these justifications, Nigerians kicked against the proposed increase in electricity tariffs for other bands.
73% of Nigerians against electricity tariff hike
The BusinessDay’s April 2025 TalkExchange poll showed deep concerns about several of the government’s reforms, including the almost 300% increase in tariffs for Band A customers and the affordability of necessities.
Worse still, band A customers continued to complain about poor power supply despite the higher charges, fueling critics who urged the government to reconsider its decision.
The poll showed that 73% were strongly against the electricity tariff hikes, 2.2% were undecided, while 24.4% supported the government's move.
About the long-term impact on Nigeria’s economy, 57.8% said a reduction in tariffs could help economic stability, while 33.3% said the increase in tariffs was important for Nigeria’s economic future. About 8.9% were undecided.
Regarding affordability, 60% stated electricity had become “much more difficult” to afford. About 29% said electricity is now “somewhat more difficult”, 8.9% reported no change, and 2.2% said electricity had become easier to afford.
Adebayo Adelabu speaks on Band A, others
Explaining the planned tariff hike, Adelabu explained that with the increase in Band A tariffs, the government expected investments to come into the sector so that other bands would be migrated to Band A with them, but this was not happening as fast as they had projected.
The minister stated that band B customers get about an 18-hour supply while band A customers get 20-hour supply and above.
Source: Twitter
With such little difference in supply, the gap in pricing should not be as wide as N63 and N209; hence, there is a need to regularise pricing and close the gap, he argued.
He noted that this would only close the price difference between the bands and is not necessarily an attempt to hike electricity tariffs again.
FG set to increase electricity tariffs
Legit.ng earlier reported that Adelabu insisted on the tariff hike and asked Nigerians to brace up for it.
Speaking during a meeting with the Chairmen of Electricity Generating Companies (GenCos) in Abuja over the weekend, Adelabu said the government’s subsidy had increased to over N4 trillion in unpaid debts.
The minister described the situation as a threat to Nigeria's power sector's survival and added that a tariff hike was the only way out. He noted that targeted subsidies would be retained for the poorest Nigerians.
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Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
