Nigeria’s recent electricity tariff adjustments have proven to be a financial boon, generating over N700 billion in 2024, marking a significant 70% increase compared to the previous year. The announcement was made by the Minister of Power, Mr. Adebayo Adelabu, during the 6th edition of the 2025 Ministerial Press Briefing Series in Abuja.
According to Adelabu, the surge in revenue is a direct result of the government’s cost-reflective tariff changes, particularly for Band A customers. He emphasized that this growth in revenue is unprecedented, as previous tariff increases never exceeded 20%.
“The new tariff reforms have generated an additional N700 billion, reflecting a 70% increase in the market revenue compared to 2023,” said Adelabu. “This is a clear indication that the reforms are working and that they have helped reduce the financial strain on the government.”
Despite some concerns from consumers about the increased tariffs, the Minister assured that the higher revenue has allowed the government to reduce its subsidy burden. Adelabu pointed out that the tariff subsidy shortfall has decreased from N3 trillion to N1.9 trillion, representing a 35% reduction.
The Minister also highlighted the progress made under President Bola Tinubu’s Renewed Hope agenda, particularly the development of the National Integrated Electricity Policy (NIEP), which is awaiting approval from the Federal Executive Council. Adelabu explained that the NIEP is a comprehensive, data-driven framework for reforming and modernizing the power sector, aimed at improving transparency and attracting more investments.
In addition to tariff reforms, the Minister outlined plans to provide electricity access to millions of Nigerians who currently lack power. This effort is aligned with Nigeria’s endorsement of the Nigerian Energy Compact, a flagship initiative under the leadership of the World Bank and African Development Bank (AfDB). The Compact, signed in January during a summit in Tanzania, seeks to provide electricity to an additional 300 million Africans by 2030, with an emphasis on renewable energy and clean cooking solutions.
Adelabu concluded by emphasizing the importance of these reforms in enhancing Nigeria’s energy sector and ensuring sustainable growth in the years to come.
