Dr Eguaikhide Warns of Rising Electricity Costs by 2029

Dr Femi Eguaikhide, the deputy managing director of RT Briscoe and Chairman of the Auto & Allied Sector of the Lagos Chamber of Commerce and Industry (LCCI), projected that electricity tariffs in Nigeria could surpass N350 per kilowatt-hour by 2029. This increase is attributed to the Federal Government's plan to remove the domestic gas subsidy by 2028.

Eguaikhide stated that over 60 percent of Nigeria's power is generated from gas, which is currently sold to power-generating companies (GenCos) at $2.18, while the market price ranges from $4 to $6. He indicated that the removal of the gas subsidy would significantly raise generation costs and affect businesses and electric vehicle (EV) charging.

Eguaikhide also noted that the cost of compressed natural gas (CNG) would rise, making it less attractive compared to petrol. He emphasized the need for a phased removal of the subsidy from 2026 to 2028 to avoid an energy crisis similar to that following the petrol subsidy removal.