National Electricity Regulatory Commission, NERC has indicated plans to overhaul Nigeria’s electricity tariff system by 2021 to attract the required investment and improve power supply.
Vice Chairman of NERC, Sanusi Garba stated this at a panel discussion at the Developing Market Associates UK-Nigeria Trade and Investment Forum in London.
Mr. Garba said the commission has devised a recovery plan that would fix the tariff issue stating that “Under the plan, by 2021, tariffs, regular tariffs, will reach parity with cost-reflective tariffs.”
The Vice-Chairman added that the reset plan would bring in more investors in order to add generation capacity and diversify power sources away from the gas turbines power plant.
Once done, Garba said transmission system will be expanded and 10 to 20 million customers will be added to the billing platform stressing that the potential millions of customers, is a tremendous opportunity for investors.
He explained that increasing tariffs was difficult given the lack of regular power supply and the relatively few paying customers on the system noting that only eight million electricity customers are on the billing platform and are paying for unmetered customers.
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