The Federal Government of Nigeria has announced plans to financially support low-income households⁤ to ​mitigate the impact of a forthcoming cost-reflective electricity tariff. This commitment aims to ensure access to electricity remains affordable for vulnerable populations.

Abdu Bello Mohammed, Managing Director of the Nigerian Independent System Operator (NIS), revealed the government’s intention⁢ during a recent​ roundtable discussion with power sector correspondents in ⁤Abuja, as reported by the Nigeria Television Authority (NTA).

The roundtable,‍ themed “Cost reflective tariff versus energy‌ poverty: finding a pricing balance in Nigeria’s power sector,” highlighted a consensus among stakeholders. while acknowledging ​the necessity of cost-reflective​ tariffs for the lasting growth of the Nigerian power sector, ⁢participants emphasized the critical need for⁢ simultaneous improvements in the availability and quality of electricity supply.

Key areas for improvement identified during the discussion included addressing significant technical and commercial losses within the power distribution network. Stakeholders advocated for⁢ decentralization of the national grid to ⁤minimize transmission losses and increased investment in⁢ crucial distribution infrastructure, specifically transformers ​and widespread metering solutions.