The Federal Government’s push for cost-reflective electricity tariffs has received strong backing from state governments, following a landmark resolution by the National Council on Power (NACOP), which concluded its sixth meeting in Maiduguri, Borno State.
The Council a high-level policy forum comprising federal and state energy stakeholders endorsed the implementation of tariffs that reflect the true cost of electricity generation and distribution, while calling for targeted subsidies to shield vulnerable consumers.
In a communiqué issued at the close of the meeting and made available on Monday, the Council affirmed that financial sustainability in Nigeria’s power sector cannot be achieved without tariff reform.
“Electricity must be paid for at a cost-reflective rate. Subsidies must still exist, but they must be targeted, well-administered, and sustainable,” the communiqué read.
The resolution comes as the Nigerian Electricity Supply Industry (NESI) continues to battle a liquidity crisis, driven by massive tariff shortfalls, rising energy costs, and chronic underinvestment in grid infrastructure.
Subsidy Reform and Transparency at the Core
Council members emphasized that any tariff changes must be accompanied by stakeholder engagement, transparent subsidy frameworks, and the deployment of digital tools to ensure support reaches low-income households.
The resolution reflects growing consensus among policymakers that blanket subsidies are no longer tenable and should be replaced with smart, data-driven assistance to ensure equity and financial viability across the power value chain.
The Council also resolved that market liabilities in the sector must be fairly apportioned, stressing the need for comprehensive engagement to align asset and liability allocations among market players.
Focus on Grid Stability, Skills Development, and Renewables
Several other key resolutions were adopted to support long-term sector reform:
- Grid Expansion: NACOP endorsed the construction of new double circuit 330/132kV transmission lines to improve supply in the Northeast, and approved Borno State’s request for solar mini-grid deployment in partnership with the Rural Electrification Agency (REA).
- Transmission Reliability: The Northern Corridor Transmission Project, currently underway, was highlighted as critical to stabilizing the national grid in the region.
- Mambilla Hydro Power Project: The long-delayed project remains stalled due to ongoing litigation, though stakeholders reiterated its strategic importance.
- Human Capital Development: The National Power Training Institute of Nigeria (NAPTIN) was directed to develop a Research and Innovation Framework, and refine proposals for a National Human Capital Development Framework, a Structured Apprenticeship Programme, and a Gender Mainstreaming Strategy.
NAPTIN’s refined proposals are expected to be presented to the Minister of Power for review at an upcoming Power Sector Working Group session.
States Mobilised for Power Sector Reform
The Council also called on state governments to support job creation and skills development in the power sector, through targeted investments and the implementation of national strategies aligned with sustainable economic growth.
The sixth NACOP meeting marks a significant milestone in the country’s energy reform efforts, with renewed momentum toward cost recovery, regulatory clarity, grid modernization, and inclusive growth across Nigeria’s electricity value chain.
