Stable electricity unlikely without cost-reflective tariffs — FG

Résumé détaillé

The Federal Government has stated that a sustainable electricity supply in Nigeria is not possible without implementing cost-reflective tariffs for consume Read More:…

The Federal Government has linked sustainable electricity supply to cost-reflective tariffs, stressing that consumers should not bear the burden of inefficiencies in the power sector.

The Special Adviser to the President on Power, Lanre Babalola, stated this at the Lagos Energy Summit 2026 on Tuesday, explaining measures to make Nigeria’s electricity market commercially viable and attractive to investors.

Babalola, who was represented by a member of the Presidential Task Force on Power Sector Reset and Restoration, Engr Uzoma Achinanya, said improvements in electricity supply must go with reforms to ensure that power generators and their gas suppliers receive payment for the power and fuel they provide.

The PUNCH reports that aside from Band A customers, other electricity users enjoy government subsidies, leading to the liquidity crises that have affected the sector for decades.

Babalola said the government is considering revenue ring-fencing and credit enhancement arrangements to protect investments in new electricity generation and address persistent liquidity challenges in the sector.

Speaking on the importance of an efficient tariff structure, Babalola called for “tariffs that are reflective of efficient cost, not a bill that passes inefficiency on to customers”.

He argued that the electricity market had focused disproportionately on delivering power to consumers while neglecting the financial arrangements required to ensure that generators and gas suppliers receive payment.

“Fix both circuits. One circuit carries power to the customer, the other carries money back to the generator and the gas supplier behind it. For 20 years, we focused on the first and neglected the second. Power that flows on day one will stop on day 90 if the money does not flow back,” he declared.

Babalola said revenues generated from new electricity supply should be protected and channelled towards meeting the contractual obligations that made the supply possible.

Début de l'article, extrait de Punch. Pour lire la suite, ouvrez l'article chez le média.