Electricity tariff rises to 300 percent

The federal government has reportedly approved power companies’ move to raise electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers this month. Bloomberg news agency reported that these customers represent 15% of the population that the government says consume 40% of the nation’s electricity.
The report added;
“Nigerians will now have to pay $2.42 per one million
British thermal units from the previous rate of $2.18
MMBtu. Power firms aren’t allowed to charge enough
to recover the cost of distributing electricity, with the
government paying the difference as a subsidy to
companies in the sector.
“The government has in the past said that electricity
companies are short of an estimated two trillion naira
in capital and need new investors to revive the
industry.”
This is coming after the Nigerian Midstream and
Downstream Petroleum Regulatory Authority
(NMDPRA) announced an increase in the price of
natural gas, which is used to generate more than 70%
of electricity in Nigeria.