Nigeria to continue phased electricity subsidy removal and tariff reforms
via Punch Nigeria12 min read
The Federal Government of Nigeria plans to continue phasing out electricity subsidies and transitioning to cost-reflective tariffs across the power sector. Special Adviser to the President on Power Infrastructure, Sadiq Wanka, stated that vulnerable Nigerians will receive targeted support, possibly through a proposed Power Consumer Assistance Fund. Wanka acknowledged that cost-reflective tariffs are a challenging topic but affirmed the government's commitment to the policy, expecting the transition to occur within the next year or so. He highlighted that Nigeria's electricity sector lags behind many emerging economies in per capita consumption and infrastructure, requiring about $9 billion to $12 billion annually in investments through 2045, significantly more than the current $1 billion. The Electricity Act 2023 has liberalized the sector, creating new investment opportunities, particularly in embedded generation, mini-grids, industrial clusters, and renewable energy sources like solar and hydropower, which are projected to constitute 80% of installed capacity by 2045. Executive Director of Governance and Sustainability at Sahara Group, Ejiro Gray, emphasized the need for African journalism to critically examine energy transition narratives rather than merely echoing external assumptions.
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This summary was AI-generated from a story originally published by Punch Nigeria.
The Nigerian Exchange Limited experienced a significant downturn on Wednesday, with aggressive profit-taking in high-capitalization stocks leading to an N800bn reduction in total market valuation. The All-Share Index fell by 1,241.19 points, a 0.50 percent decline, closing at 245,418.37 basis points, and market capitalization dropped to N158.319tn. This decline was primarily driven by price depreciation in major consumer goods and industrial companies such as Nestle Nigeria, BUA Foods, UACN, Guinness Nigeria, and MeCure Industries. Despite the broader market contraction, investor sentiment showed resilience with 37 gainers outperforming 27 decliners. Analysts noted a high concentration of trading activity in First Holdco, indicating strong institutional participation, and sustained buying interest in tier-one banking stocks. Cadbury Nigeria, Trans-Nationwide Express, and Unilever Nigeria led the gainers, each advancing by 10 percent, while Nestle Nigeria and BUA Foods were among the top decliners, shedding 10 percent each. Activity levels increased significantly, with total volume traded jumping 34.34 percent to 1.253 billion units, valued at N118.179bn, across 47,458 deals. First Holdco dominated the activity chart, exchanging 736.038 million shares for N80.812bn.
Nigerians have experienced a 130.87 percent increase in motorcycle taxi okada fares since President Bola Tinubu took office, according to an analysis by The PUNCH of the National Bureau of Statistics’ Transport Fare Watch reports for May 2023 and May 2026. The average okada fare rose from N464.55 in May 2023 to N1,072.51 in May 2026. This surge is attributed to higher fuel prices following the removal of the petrol subsidy and the depreciation of the naira, which also increased costs for motorcycles, spare parts, and maintenance. The NBS report for May 2026 indicates that transport fares continued to climb across all major categories, including bus journeys within cities up 120.33 percent, intercity road transport up 142.35 percent, air travel up 110.22 percent, and water transportation up 117.81 percent over the three-year period. Kaduna, Lagos, and Abia recorded the highest average motorcycle transport fares in May 2026, while Adamawa, Akwa Ibom, and Kebbi had the lowest. The South-West region showed the highest average fares for bus journeys within cities and intercity travel, as well as for motorcycle transport. The South-South region recorded the highest average airfare and water transportation fares.
Must ReadA Federal High Court in Lagos has upheld the Federal Competition and Consumer Protection Commission's power to regulate Nigeria's digital consumer lending market, including airtime and data lending services. Justice Ambrose Lewis-Allagoa dismissed a suit filed by the Wireless Application Service Providers Association of Nigeria WASPAN that challenged the FCCPC's regulatory authority, particularly its Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations DEON Regulations. The court ruled that the FCCPC's regulatory powers are rooted in the Constitution and the Federal Competition and Consumer Protection Act, 2018, emphasizing that these powers are economy-wide and concurrent with those of sector-specific regulators like the Nigerian Communications Commission NCC. While affirming the FCCPC's regulatory role, the court clarified that the FCCPC does not have the power to issue licenses, a point highlighted by WASPAN. The judgment also discharged interim injunctions that had previously restrained the FCCPC from enforcing the DEON Regulations. Stakeholders, including the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, welcomed the clarity but called for coordination between regulators to avoid service disruptions, noting the market is valued between N300bn and N400bn annually and serves about 40 million subscribers.