Power price increases will ease subsidies in Nigeria

Significance The prices now stand at NGN206.8 (USD0.14) per kilowatt-hour from an original price of NGN66.0 per kilowatt-hour. The price increases are intended to help reduce federal electricity subsidies and growing supply costs, and increase revenues for electricity distribution companies (DisCos). Impacts Increased electricity prices may have inflationary effects. Expanding price increases to other categories of customers may lead to protests. Insecurity could throw up obstacles to grid expansion in large parts of the country.