Nigeria has cut its electricity subsidies by 35% after implementing a targeted tariff increase for high-usage consumers last year.
Power Minister Adebayo Adelabu stated that the adjustment, affecting the top 15% of electricity users, generated an additional 700 billion naira in revenue, reducing the government’s tariff shortfall from 3 trillion to 1.9 trillion naira.
Despite these gains, the power sector continues to face challenges, including a failing grid, gas shortages, vandalism, and a significant debt load.