Electricity tariff to go up by 300%

The federal government has reportedly approved power companies’ move to raise electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers this month. 

Bloomberg news agency reported that these customers represent 15% of the population that the government says consume 40% of the nation’s electricity. 

The report added; 

“Nigerians will now have to pay $2.42 per one million British thermal units from the previous rate of $2.18 MMBtu. Power firms aren’t allowed to charge enough to recover the cost of distributing electricity, with the government paying the difference as a subsidy to companies in the sector. 

“The government has in the past said that electricity companies are short of an estimated two trillion naira in capital and need new investors to revive the industry.” 

This is coming after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced an increase in the price of natural gas, which is used to generate more than 70% of electricity in Nigeria.