By Rasheeda Hamidu
Cost-reflective electricity tariffs will improve power supply, attract investment and support Nigeria’s transition to a more sustainable energy sector, the Executive Director of the International Centre for Energy, Environment and Development (ICEED), Ewah Eleri, has said.
Eleri stated this on Monday in Abuja while speaking on reforms needed to strengthen Nigeria’s electricity sector.
According to Eleri, electricity tariffs that reflect the actual cost of supplying power would encourage investment and enable electricity companies to expand transmission and distribution infrastructure.
He said, “Cost-reflective tariffs will not only improve delivery but also encourage new investments in both fossil-fuel and renewable energy generation.”
Eleri said research conducted by ICEED showed that Nigeria spent about ₦3 trillion on electricity subsidies in the past year, with wealthier households receiving a disproportionate share of the benefits.
He explained that the top 10 per cent of households received more than half of the subsidy benefits, while the poorest 40 per cent received only a small fraction.
The energy expert argued that Nigeria’s electricity subsidy framework was inequitable and financially unsustainable, urging the government to adopt reforms that protect vulnerable households while improving sector financing.
He also commended the implementation of the Electricity Act, noting that about 15 states had established electricity regulatory agencies, but stressed the need for greater coordination between the Nigerian Electricity Regulatory Commission (NERC) and state regulators.
NatureNews notes that cost-reflective tariffs can improve the financial viability of electricity markets, creating opportunities for investment in cleaner energy technologies, including renewable power generation.
NatureNews reports that expanding investment in reliable and sustainable electricity infrastructure remains critical to reducing greenhouse gas emissions, improving energy access and supporting Nigeria’s climate and development goals.
