Former Minister of Power and Special Adviser to the President on Power, Lanre Babalola, has blamed inefficiencies in Nigeria’s electricity sector for contributing to high tariffs paid by consumers.
Babalola said high electricity prices should not automatically be regarded as cost-reflective, stressing the need to establish whether tariffs reflect efficient operations or losses within the system.
He spoke at the third edition of the Abuja Policy Lab, organised by the German Embassy in Nigeria, where stakeholders examined ways to improve electricity supply.
The former minister identified aggregate technical, commercial and collection losses of about 40 per cent, alongside inefficiencies in power generation, as major factors driving up electricity costs.
He noted that tariffs of about ₦200 per kilowatt-hour for Band A customers were already high by international standards, making it necessary to address the operational challenges contributing to the cost.
While acknowledging the importance of reliable electricity for businesses and households, Babalola maintained that dependable power supply should not come at an excessively high price.
He therefore called for measures to reduce electricity losses and improve operational efficiency, saying such interventions could help lower tariffs without compromising reliable power supply.
