*Olu Verheijen, Special Adviser to President Bola Ahmed Tinubu on Energy, in a recent media chat, in Tanzania, reportedly notes 鈥榦ne of the key challenges we鈥檙e looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff鈥�

Isola Moses | 绿帽献妻

The Federal Government of Nigeria has restated its determination to ensure fund availability for the needed maintenance to improve reliability and attract private investors into power generation and transmission.

绿帽献妻 reports the government, however, said that Nigerian energy consumers should brace up for fresh electricity tariffs in months ahead.

Olu Verheijen, Special Adviser to President Bola Ahmed Tinubu on Energy, said this in a recent interview in Dar es Salaam, Tanzania.

Verheijen was in Tanzania for a World Bank-backed conference where Nigeria presented a $32 billion plan to boost electricity connections by 2030.

Private investors are expected to contribute $15.5 billion and the rest will come from public sources, including the World Bank and African Development Bank, agency report said.

Verheijen also noted Nigeria鈥檚 power prices need to rise by about two thirds for several consumers in order to reflect the cost of supplying it.

The Presidential aide further averred that higher electricity tariffs, which need to be balanced by 鈥渟ubsidies for less-affluent consumers鈥�, are required to fund the maintenance needed to improve reliability and to attract private investors into power generation and transmission value chain in the ecosystem.

She was quoted to have said: 鈥淥ne of the key challenges we鈥檙e looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff.鈥�

This is needed 鈥渟o the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable,鈥� stated Verheije.

It is equally noted that the move to raise power tariffs comes amid mounting pressure from Nigeria鈥檚 debt-burdened electricity Distribution Companies (DisCos) for tariffs to be cost-reflective, so they can improve their finances in the sector.

Nigeria鈥檚 privatised power generation and distribution, in 2013, prices set by the government鈥檚 Nigeria Electricity Regulatory Commission (NERC) don鈥檛 cover the suppliers鈥� costs, according to report.

Government subsidies cover some of the difference, but profitability is hard to achieve, a report noted.

Verheijen, therefore, emphasised that the country鈥檚 power industry needs significant investment to achieve its development aims.

According to her, of the country鈥檚 14 Gigawatts of installed power, only eight Gigawatts can be transmitted around the country, and just four or five Gigawatts can be directly delivered to homes and businesses.

She as well noted Siemens AG is working with the government on a $2.3 billion project to improve transmission and distribution, while more than seven million Nigerians in rural areas have been given access to power via decentralised renewable projects.

The Special Adviser said: 鈥淵our energy policies have to be closely linked with your own ambition for your country.

鈥淥ur own ambition is to be a $1 trillion economy in five years and to move to an upper-middle income country in 25 years.鈥�