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''300% electricity bill increase''

                                             ''300% electricity bill increase''

''300% electricity bill increase''

Nigeria's energy supplier will raise electricity prices to 200 naira ($0.15) per kilowatt hour from the current N68.

Bloomberg news agency reported on the expected power increase, noting that it would affect about 15% of the population, which will reportedly consume 40% of the country's electricity.

The decision to nearly triple tariffs in a matter of weeks is part of Nigeria's strategy to attract new investment in the energy sector and slash spending on $2.3 billion a year in electricity subsidies.

According to the platform, people close to the president with knowledge of the developments said these measures are aimed at making energy markets more financially sustainable and attractive to investors.

Additionally, the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently announced an increase in the price of natural gas, which supplies over 70% of the country’s electricity generation. NMDPRA CEO Farooq Ahmed explained that a new base gas price for 2024 has been set for companies and commercial users in the energy sector. This represents a change from the previous $2.18 per million British thermal units (MMBtu) to $2.42.

Since privatizing the electricity generation and distribution sector in 2013, Nigeria has regulated electricity prices through the Nigeria Electricity Regulatory Commission (NERC).

"Energy companies are not allowed to charge enough to cover their distribution costs, and the government pays the difference in subsidies to companies in the sector," Bloomberg said.

“Government has said in the past that power utilities have an estimated capital shortfall of N2 trillion and new investors are needed to revive the industry.”

Bloomberg quoted Presidential Spokesperson Bayo Onanuga as saying, "The regulatory authority (NERC) will issue a statement based on consultations with electricity distribution and generation companies."

"The president can't say anything at this point." The power sector has been hit hard.

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