Nigerians Pay Lowest Electricity Tariff In West Africa — Adelabu

Nigerians pay the least electricity tariff compared to neighbouring African countries says Adelabu

Adebayo Adelabu, the minister of power, claimed that people in neighboring African countries like Guinea, Togo, and Mali pay a lot more for electricity than people in Nigeria. Adelabu underlined that if the country's electricity supply improved proportionately, Nigerians would be prepared to pay higher bills.

Adelabu conversed with the executives of the distribution company on Thursday while visiting the corporate offices of Ikeja Electric in Lagos State.

He emphasized that in order to ensure a tariff that is cost-reflective, it is imperative that all parties involved in the electrical supply chain work together to create a framework for the elimination of electricity subsidies.

Adelabu suggested legislative measures to impose capitalization requirements, forcing power distribution corporations (Discos) to invest in necessary infrastructure in response to complaints about their insufficient investment in power infrastructure.

He highlighted the capital-intensive characteristics of the electricity industry and how, with significant investments, it can generate more revenue.

Read: FG Directs NERC Removal of Non-Performing DISCOS's Licenses

Adelabu saw the difficulties Nigerians were facing as a result of gas shortages that were impacting the country's electricity supply and the high cost of fuel after subsidies were removed. He was confident that if electricity reduced Nigerians' need on expensive fuel substitutes, they would be prepared to pay more for it.

Adelabu drew attention to the difference in power costs between Nigeria and its neighbors, pointing out that even with Nigeria's economic standing, its neighbors pay more than twice as much for electricity. He underlined that prospective tariff rises would need to be justified by a steady and dependable electricity supply.

Ikeja Electric's CEO, Folake Soetan, welcomed the minister and reaffirmed the company's resolve to overcome obstacles in the electricity industry in response. Soetan emphasized the company's successes in growing its clientele and implementing metering programs, but he also called attention to problems including energy theft and asset vandalism and asked the minister for help in resolving these concerns.