The Managing Director of the Nigerian Independent System Operator (NISO), Abdu Bello Mohammed, has said that the worsening economic situation in the country — marked by rising inflation, unemployment, and declining purchasing power — has made it difficult for Nigerians to cope with higher electricity tariffs.
Speaking at the 5th Annual Conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja, Mohammed cautioned that millions of Nigerians are being pushed further into energy poverty, even while connected to the national grid.
He emphasized that while cost-reflective tariffs are essential for ensuring the financial sustainability of the power sector, their implementation must be gradual and structured to protect low-income households through targeted subsidies and lifeline tariffs.
According to him, despite multiple tariff reviews over the past decade, the power sector continues to suffer from liquidity shortfalls, poor infrastructure, and limited investment, largely because current tariffs do not reflect actual market costs.
“Tariff design is the heartbeat of the power sector — it determines investor confidence and consumer affordability,” Mohammed stated.
He stressed that any transition to cost-reflective tariffs must be tied to tangible service improvements, noting that consumers are more willing to pay when electricity supply is reliable and transparent.
In a related development, the Electricity Consumer Protection Advocacy Centre (ECPAC) has petitioned international human rights organizations, accusing electricity distribution companies (DisCos) of exploiting consumers through estimated billing and neglect of critical infrastructure.
ECPAC’s Executive Director, Chief Princewill Okorie, urged the Federal Government and the Nigerian Electricity Regulatory Commission (NERC) to enforce transparency, fairness, and stronger consumer protections in the management of electricity tariffs.
