Jennifer Adighije, the Managing Director and CEO of the Niger Delta Power Holding Company, has proposed an increase in electricity tariffs for users in Bands B through E across Nigeria. This call comes as the nation’s power sector grapples with significant financial challenges.
In a statement released in Lagos, Adighije advocated for the complete removal of electricity subsidies, asserting that such a move is crucial for achieving financial stability within the sector. She highlighted that a financially sound electricity market is indispensable for rebuilding investor confidence, encouraging private sector investment, and fostering long-term sector development.
“Liquidity issues plague the electricity market, with only approximately 30 percent of sector invoices currently being settled. This shortfall creates considerable financial pressure throughout the entire value chain,” Adighije explained. She further recommended the separation of government subsidies from electricity tariffs and the phased introduction of tariffs that fully reflect the cost of service for all customer categories.
This proposal follows a previous tariff adjustment in April 2024, when the federal government sanctioned an increase for Band A customers under the service-based tariff. Despite this measure, Nigerians continue to experience inconsistent and unreliable power supply nationwide.
Recent reports indicate that the power sector is embroiled in a dispute over substantial legacy debts. Electricity generation companies claim the federal government owes them N6.5 trillion, a figure contested by the Nigeria Labour Congress. While a recent audit reportedly placed the debt at N2.8 trillion, as stated by President Bola Ahmed Tinubu, generation companies have refuted this assertion.
