Electricity tariffs in Nigeria may soon rise as power generation companies intensify pressure on the Nigerian Electricity Regulatory Commission (NERC) to factor in the recent increase in domestic gas prices when reviewing tariff structures.
The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, said gas costs are a “pass-through” component and must be reflected in electricity pricing.
Despite this, Ogaji stressed that the sector’s most pressing challenge is not tariffs but poor payment discipline. According to her, a significant number of electricity invoices remain unpaid, regardless of pricing levels.
She also highlighted the absence of “bankable demand,” questioning how many consumers actually pay for the electricity they use, and pointing to a lack of transparency in revenue collection. Without structural reforms and stricter enforcement, she warned, the sector risks continued stagnation.
Similarly, the Executive Director of PowerUp Nigeria, Adetayo Adegbenle, noted that rising gas prices will inevitably lead to higher electricity tariffs and increased subsidy obligations.
He explained that even if tariffs are not immediately adjusted, the cost of power generation and outstanding invoices will continue to grow. Adegbenle therefore called for a transition to a fully deregulated, contract-based electricity market.
Meanwhile, consumer advocate Kunle Olubiyo criticised the current gas pricing framework as lacking clarity. He argued that inefficiencies such as inadequate metering and high energy losses are major contributors to inflated electricity costs, adding that addressing these issues could help reduce the burden on consumers.
With gas accounting for more than 70 percent of Nigeria’s electricity generation, experts warn that without coordinated reforms in pricing, payment systems, and transparency, the latest developments could further strain the country’s already fragile power sector.
