As discussions intensify over a potential surge in electricity costs in Nigeria, renowned energy expert and Founder of PUTTRU, Monica Maduekwe, has proposed key measures the Federal Government can adopt to cushion the impact on vulnerable consumers.
With Nigeria’s inflation rate currently at 24.48 per cent, Maduekwe emphasized that power companies are grappling with escalating operational costs. These rising expenses could directly affect service quality if not offset through subsidies or passed onto consumers.
Highlighting the strain on the government’s existing subsidy—reported to cover about 35 per cent of electricity costs—Maduekwe argued that this approach is increasingly unsustainable. Instead, she suggested that the government introduce concessional credit lines to electricity companies. By offering low-interest loans or financial support, these credit lines could help reduce operational expenses, ensuring that power companies maintain service quality without overburdening consumers.
“Rather than leaning heavily on subsidies, providing targeted financial relief through concessional credit can help stabilize the sector while shielding consumers from significant rate hikes,” Maduekwe stated.
She further stressed the importance of long-term strategies, including investments in infrastructure and energy efficiency, to create a more resilient and affordable electricity market in Nigeria.
As the debate over electricity tariffs continues, Maduekwe’s recommendations offer a roadmap for balancing the interests of power providers and the millions of Nigerians who rely on affordable electricity.
