Nigeria’s power sector is under renewed scrutiny following revelations that the Nigerian Electricity Regulatory Commission (NERC) is charging Band A customers N50/kWh above cost-reflective levels to subsidise other categories.
Nigeria’s power sector is under renewed scrutiny following revelations that the Nigerian Electricity Regulatory Commission (NERC) is charging Band A customers N50/kWh above cost-reflective levels to subsidise other categories. The Enugu State Electricity Regulatory Commission (EERC) recently set a Band A tariff at N160/kWh, significantly below the national average of N208/kWh, assuming a generation cost of just N45/kWh. “The assumption that the Federal Government will cover 60 per cent of GenCos’ costs is not backed by cash or policy,” said Dr Joy Ogaji, Executive Secretary of the Association of Power Generation Companies. Stakeholders warned that this pricing model threatens market stability. “Patriotism alone cannot keep machines running or the lights on,” Ogaji added. Electricity debts now exceed N4 trillion, with GenCos warning of collapse. “The national grid should sell to Enugu at a cost-reflective rate. What Enugu does with it afterwards is their business,” said power expert Adetayo Adegbemle.