The Federal Government’s move to enforce cost-reflective electricity tariffs has secured the support of state governments.
This consensus emerged from the sixth meeting of the National Council on Power, a platform for federal and state stakeholders, which reaffirmed the urgent need for tariff reforms. The Council also advocated targeted subsidies to shield vulnerable citizens from the impact of higher rates.
Held in Maiduguri, Borno State, the meeting gathered key players from all levels of government, regulatory agencies, and the power sector.
In a communiqué issued after the event and obtained by The PUNCH on Monday, the Council emphasized that the long-term financial stability of Nigeria’s electricity sector depends on tariffs that accurately reflect the true cost of power generation and distribution.
The Federal Government’s plan to implement cost-reflective electricity tariffs has gained the backing of state governments.
This agreement was reached during the sixth meeting of the National Council on Power, a forum that brings together stakeholders from both the federal and state levels. The Council underscored the urgent need for tariff reforms and recommended targeted subsidies to protect vulnerable groups from potential rate hikes.
The meeting, held in Maiduguri, Borno State, brought together representatives from all tiers of government, regulatory bodies, and the electricity industry.
In a communiqué issued after the meeting and obtained by The PUNCH on Monday, the Council stressed that achieving financial stability in Nigeria’s power sector requires tariffs that reflect the actual cost of electricity generation and distribution.
The Council further decided that market liabilities should be equitably distributed among all parties, subject to comprehensive consultations to ensure proper allocation of assets and liabilities. It approved initiatives to advance capacity building, improve grid stability, and fast-track renewable energy investments across the country.
Moreover, the Council instructed the National Power Training Institute of Nigeria to identify innovative funding methods for establishing a Research and Innovation Framework within the Nigerian Electricity Supply Industry, aimed at fostering locally developed solutions to technical and operational challenges.
