The federal government of Nigeria is taking decisive action to revive its ailing power sector by attracting $15 billion in private investments to address a $23 billion funding gap.
Eko Hot Blog gathered that the initiative was unveiled at the ongoing World Bank Energy Summit in Tanzania, with a primary focus on tackling the country’s electricity crisis and providing power to the 86 million Nigerians currently living without access to electricity.
As part of the plan, households will receive a subsidized 50 kilowatt-hours (kWh) of electricity monthly, either through direct consumption or vouchers.
This strategy combines higher electricity tariffs with fresh subsidies to alleviate the financial burden on households, as outlined by the Bola Tinubu-led government.
The proposal also seeks to double the number of households connected to the grid annually and increase renewable energy’s share of the generation mix from 22% to 50% within five years.
Despite being Africa’s top natural gas producer with abundant hydro and solar resources, Nigeria generates approximately 13,000 megawatts of electricity for over 200 million people.
Last year, the removal of electricity subsidies for about 15% of urban households tripled tariffs, with Nigeria paying around N2.2 trillion on subsidies in 2024 alone.
The new plan aims to implement full-cost tariffs by 2027 while providing a buffer for vulnerable households.
However, a buffer mechanism will be introduced to protect vulnerable households from the full impact of higher tariffs.
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