The Federal Government has announced plans to increase electricity tariffs for customers outside the Band-A category to enhance the liquidity of the Nigerian Electricity Supply Industry (NESI).

The proposed hike aims to bring tariffs for other customer categories closer to the N206/kW paid by Band-A customers, who number about two million.

Speaking at the public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja, the Minister of Power, Chief Adebayo Adelabu, stated that the government could no longer sustain the N3 trillion subsidy on the power sector.

Adelabu emphasized that with power generation and distribution increasing by about 35% in 2024, ensuring the commercial sustainability of the industry is crucial for continued growth.