Nigeria, a country with about 237 million people, has an electricity access rate of around 62 per cent. However, unreliable grid supply continues to affect productivity and disrupt daily life, according to a report.
The decision to increase electricity tariffs comes amid pressure from Nigeria’s debt-laden electricity Distribution Companies (Discos), which are pushing for cost-reflective tariffs to improve their finances.
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Although Nigeria privatized its power generation and distribution in 2013, government-regulated prices set by the Nigerian Electricity Regulatory Commission (NERC) remain below suppliers’ costs. While subsidies help bridge the gap, profitability remains difficult to achieve, Bloomberg reported.
Verheijen, speaking at a World Bank-backed conference in Tanzania, highlighted Nigeria’s $32 billion plan to expand electricity access by 2030. Private investors are expected to contribute $15.5 billion, with additional funding from public sources, including the World Bank and the African Development Bank (AfDB).
Nigeria’s power sector requires significant investment to meet development goals, Verheijen said. Of the country’s 14 gigawatts of installed power capacity, only eight gigawatts can be transmitted nationwide, and just four to five gigawatts are directly delivered to homes and businesses.
Siemens AG is collaborating with the government on a $2.3 billion project to improve power transmission and distribution. Additionally, decentralized renewable energy projects have provided electricity to over seven million Nigerians in rural areas.
“Your energy policies have to be closely linked with your own ambition for your country,” Verheijen stated.
“Our ambition is to become a $1 trillion economy within five years and achieve upper-middle income status in 25 years,” she added.
