Despite claims by the Minister of Power, Abubakar Aliyu, that Nigeria has the cheapest electricity, recent findings reveal that over 100 countries offer more affordable electricity rates than Nigeria.

This is in stark contrast to the near-zero improvement in power supply efficiency during President Muhammadu Buhari’s tenure.

The current regime has increased electricity tariffs by over 168% in the last eight years, resulting in billing jumping from an average of N23.5 per kilowatt-hour (kWh) in 2015 to N63 per kWh as of January 2023.

In 2015, Nigerians paid between N16 and N31 per kWh, but now consumers pay between N55 and N71 per kWh, depending on their category.

Despite the high cost of electricity, supply gaps remain substantial, leaving many Nigerians reliant on generators due to unavailable electricity and estimated billing practices.

Additionally, various federal agencies and ministries owe distribution companies approximately N75 billion in accumulated debt between 2015 and 2020.

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Even if the government pays the N8 billion allocated in the current budget, a N67 billion electricity debt burden will still be passed on to the next administration.

Cable, a UK-based research company that measures electricity bills globally, has ranked Nigeria 109th out of 230 countries in terms of the cheapest electricity.

Libya, Angola, Sudan, Kyrgyzstan, and Zimbabwe are the top five countries with the lowest electricity costs. Nigeria’s average electricity tariff was projected to be around N56 per kWh, considering the official exchange rate.

However, the current rates range from $0.15 to $0.17 per kWh, which is significantly higher, especially when considering Nigeria’s minimum wage of N30,000 and the declining purchasing power of the currency.

The Nigerian Electricity Regulatory Commission (NERC) had initially projected that residential consumers would not pay more than N45 per kWh between 2015 and 2024.

However, economic realities have forced tariff increases of over 150%. The current Multi-Year Tariff Order – 2022 (MYTO – 2022) approved by NERC has further raised tariffs, with consumers now paying approximately N55 per kWh.

Some customers under band A, who were supposed to have 20 hours of electricity per day, are paying around N71 to N80 per kWh.

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Critics of the current situation argue that comparing Nigeria’s electricity prices with other countries is unfair without considering domestic incomes.

Nigeria’s minimum wage is one of the lowest globally, and the continuous depreciation of the national currency further exacerbates the situation.

They emphasize the need to strengthen consumers’ real income to balance the equation instead of solely focusing on repricing electricity services.

Experts also highlight the rampant electricity theft, the burden of funding infrastructure (such as electric poles and transformers) falling on consumers, and the need for a comprehensive overhaul of the power sector to improve generation, transmission, and distribution.