Energy expert, Nick Agule, has criticised Nigeria’s electricity pricing regime, describing it as punitive to consumers despite poor and unreliable supply, while warning that state governments lack the capacity to shoulder rising power costs.
Agule spoke on Wednesday during an interview, where he compared electricity costs in Nigeria with those in the United Kingdom, drawing attention to what he described as a stark imbalance between tariffs and service delivery.
“They haven’t put in anything, and Nigerians are just being strangulated with policies,” Agule said.
“There’s something I will say now that will shock Nigeria. I pay for electricity in the United Kingdom where I have a home. I pay for electricity in Nigeria where I have a home. I’m paying far more for electricity in Abuja than I pay in London. And yet in London, I get 24/7, 365 days electricity, non-stop.”
Responding to questions on whether Nigerian states have the capacity to absorb electricity costs amid the Federal Government’s push to address legacy debts and move towards cost-reflective tariffs, Agule expressed strong reservations.
He noted that while the policy direction may aim to stabilise the power sector, it risks worsening the financial strain on already indebted electricity distribution companies (DisCos), especially given reports that about 20 states were unable to settle electricity bills in 2024.
“I have done the analysis, I can share it offline. Minimum wage in Nigeria can only attract about 350 units of electricity on Band A. In the UK, the same minimum wage attracts about 7,500 units of electricity. So the Nigerian consumer is worse off, even at that level.” he explained.
On the question of state governments’ ability to cope, Agule was unequivocal.
“The states won’t have the capacity to pay, yes, the states are drawing more from the Federation Account, but that does not automatically translate to the ability to absorb these electricity costs.” he concluded.
His comments come amid growing public concern over rising electricity tariffs, service bands, and the sustainability of Nigeria’s power sector reforms, as consumers continue to complain of higher bills without corresponding improvements in supply.