Nigeria Urged to Phase Out Universal Electricity Subsidies

Stakeholders in Nigeria’s electricity industry are calling on the Federal Government to phase out blanket subsidies on electricity tariffs and adopt pricing that reflects the true cost of supply.

Jennifer Adighije, the Managing Director and CEO of the Niger Delta Power Holding Company (NDPHC), highlighted persistent structural weaknesses and cash flow challenges in the nation’s power market.

She said removing subsidies for all categories of electricity consumers and introducing fully cost‑reflective tariffs over time could help stabilise the sector’s finances, build investor confidence, and encourage greater private sector involvement.

Adighije pointed out ongoing liquidity pressures that have hindered operations across the value chain, noting that only a fraction of the invoices generated in the market are actually settled. She added that boosting the sector’s revenue base through tariff reform is critical for attracting investment and supporting long‑term growth in electricity supply.