Jennifer Adighije, MD of NDPHC, calls for increased electricity tariffs for Band B–E users in Nigeria, citing subsidy removal, liquidity crisis, and N6.5 trillion GenCos debt controversy.
Nigeria Electricity Tariff Hike: NDPHC Boss Calls for Cost-Reflective Pricing
The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), Jennifer Adighije, has called on the Federal Government to increase electricity tariffs for Band B to Band E customers across Nigeria.
Speaking in Lagos, Adighije emphasized that eliminating electricity subsidies and transitioning to fully cost-reflective tariffs would help stabilize Nigeria’s struggling power sector and restore investor confidence.
Why Nigeria May Increase Electricity Tariffs for Band B–E
According to Adighije, Nigeria’s electricity market is facing severe liquidity challenges. She revealed that only about 30% of invoices within the power sector are currently settled, creating financial strain throughout the electricity value chain — from generation companies (GenCos) to distribution companies (DisCos).
She explained that:
- Subsidy removal is critical to improving sector liquidity.
- A cost-reflective tariff structure will attract private sector investment.
- Financial sustainability is essential for long-term power supply stability.
- Decoupling government subsidies from electricity pricing will reduce systemic inefficiencies.
Adighije noted that establishing a financially viable electricity market is key to ensuring consistent power supply and sustainable growth in the sector.
Background: Band A Electricity Tariffs Hike and Ongoing Power Challenges
In April 2024, the Federal Government approved a tariff increase for Band A customers under the Service-Based Tariff framework. However, despite this increase, many Nigerians continue to experience unreliable and inconsistent electricity supply nationwide.
The proposed hike for Band B–E users could significantly impact households and businesses that already struggle with high energy costs and unstable power delivery.
GenCos Debt Controversy: N6.5 Trillion or N2.8 Trillion?
The electricity tariff debate comes amid growing controversy over legacy debts in Nigeria’s power sector.
Electricity Generation Companies (GenCos) have claimed that the Federal Government owes them approximately N6.5 trillion in unpaid debts. However, the Nigeria Labour Congress has strongly opposed tariff increases, arguing that consumers should not bear the burden of sector inefficiencies.
Meanwhile, President Bola Ahmed Tinubu recently stated that following an audit, the verified debt stands at N2.8 trillion, a claim GenCos have disputed.
This disagreement has intensified calls for transparency, structural reform, and clearer financial accountability within Nigeria’s electricity market.
What Subsidy Removal Means for Nigerian Consumers
If implemented, a tariff hike for Bands B–E would mean:
- Higher electricity bills for millions of households
- Reduced government subsidy burden
- Potential improvements in sector liquidity
- Increased pressure on DisCos to meet service obligations
However, experts warn that tariff adjustments without significant improvements in power supply could trigger public backlash.
The Future of Nigeria’s Power Sector
Adighije maintains that gradual implementation of cost-reflective tariffs across all customer segments is necessary to build a stable and investment-friendly electricity market.
While tariff hikes remain controversial, stakeholders agree that addressing liquidity gaps, legacy debts, and structural inefficiencies is critical to resolving Nigeria’s long-standing electricity crisis.
As discussions continue, Nigerians will be watching closely to see whether reforms will translate into improved power supply — or simply higher monthly bills.