The Managing Director and Chief Executive Officer of Niger Delta Power Holding Company, Engr. Jennifer Adighije, has urged the Federal government to hike electricity tariffs for Band B-E users in Nigeria.
Adighije made this call in a recent statement in Lagos.
She argued that the removal of subsidies for all electricity users would ensure financial stability in Nigeria’s power sector.
According to her, establishing a financially viable electricity market is essential for restoring investor confidence, attracting private sector participation, and ensuring sustainable sector growth.
“In addition, liquidity constraints within the electricity market remain a major concern, as only about 30 percent of sector invoices are currently settled, creating financial strain across the value chain.
“To address these systemic issues, there should be the decoupling of government subsidies from electricity tariffs and the gradual implementation of fully cost-reflective tariffs across all customer segments,” she said.
The Federal government, in April 2024, approved an electricity tariff hike for Band A customers under the service-based tariff.
Despite the hike, Nigerians have continued to face epileptic power supply nationwide.
In the past days, controversy has trailed the country’s power sector over legacy debts.
Electricity generation companies claim that the debt owed to them by the Federal government amounted to N6.5 trillion, but the Nigeria Labour Congress repudiated the claim.
Recently, President Bola Tinubu reportedly said the debt is N2.8 trillion after an audit, which the GenCos have disputed.