Federal Government Faces Electricity Tariff Shortfall Sustainability Challenge

Joseph Tegbe, Minister of Power, stated the Federal Government cannot continue supporting electricity tariff shortfalls while simultaneously providing nationwide power coverage. Tegbe made these remarks at a recent Harvard Business School Association of Nigeria energy conference where industry experts and regulators discussed power sector challenges and strategic solutions.

structural bottlenecks in the electricity market including low revenue collection, deficient metering infrastructure, mounting debts owed to power generation companies, and market design weaknesses as key issues requiring immediate attention.

the government is working with the Nigerian Electricity Regulatory Commission (NERC) to revise tariff assumptions and market structures for improved sustainability. Tegbe stressed that commercially viable pricing requires suppliers to actually collect payment for their services.