Rising inflation and falling household incomes are driving millions of Nigerians deeper into energy poverty, despite being connected to the national grid, the Managing Director of the Nigerian Independent System Operator (NISO), Abdu Bello Mohammed, has warned. He said many citizens can no longer afford higher electricity tariffs as the cost of living continues to surge, worsening access to reliable power for both homes and businesses.
Speaking at the 5th Annual Conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja, Mohammed described the situation as a serious economic concern that demands urgent policy attention. He explained that electricity tariff design is not just about figures but a lifeline that determines whether utilities can stay solvent, investors can earn returns, and consumers can afford to remain connected.
“The tariff debate is about finding a fair balance between commercial sustainability and social fairness,” Mohammed said. “Our goal must be to ensure that no Nigerian is pushed further into energy poverty while keeping the power sector financially viable.” He added that despite nine tariff reviews in the last decade under the Multi-Year Tariff Order, the electricity sector still struggles with liquidity shortfalls, weak infrastructure, and unreliable supply — all of which erode public trust.
Mohammed urged the government to adopt targeted subsidies and properly designed lifeline tariffs to protect low-income consumers without distorting market efficiency. He stressed that achieving cost-reflective tariffs is essential, but must be pursued in a way that shields vulnerable citizens from the full impact of inflation and rising energy costs.
In a related development, electricity consumers under the Electricity Consumer Protection Advocacy Centre petitioned international human rights groups, alleging exploitation by distribution companies through inflated billing and poor service delivery. The group’s Executive Director, Chief Princewill Okorie, called for global intervention, insisting that “protecting consumer rights should be central to any discussion about electricity pricing.” The call comes amid continued debate over how to balance affordability with financial stability in Nigeria’s struggling power sector.
source: punch