The Federal Government has announced that electricity prices will go up in the coming months to keep the power sector running and attract private investors.
Presidential Adviser on Energy, Olu Verheijen, revealed this at an energy conference in Tanzania, where Nigeria outlined a $32 billion plan to improve electricity supply by 2030.
The project will be funded by both public and private sources, with investors expected to contribute $15.5 billion.
Verheijen explained that current electricity prices do not cover the actual cost of supply, making it difficult for power companies to stay afloat.
She added that while prices must rise, the government will provide subsidies to protect low-income households.
Nigeria’s electricity supply is still limited, as only 4–5 gigawatts of power reach homes and businesses, despite having 14 gigawatts of installed capacity.
To improve this, the government is working with Siemens AG on a $2.3 billion project to strengthen power transmission and distribution.
Additionally, renewable energy projects have provided electricity to millions in rural areas.
The government believes that fixing the power sector is key to growing the economy and has set an ambitious goal of making Nigeria a $1 trillion economy within five years.
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