Nigeria's 2025 Power Tariff Lowest in Africa at N124.30/kWh

According to the Nigerian Electricity Regulatory Commission (NERC), Nigeria had the lowest average electricity tariff in 2025 among 14 selected African countries, with an average allowed end-user tariff of N124.30 per kilowatt-hour (kWh), equivalent to $0.08/kWh. This rate was significantly lower than the average of $0.19/kWh in the other surveyed countries, representing 42.11% of their average rates.

The tariff comparison comes amid ongoing efforts by the Federal Government to tackle financial pressures in the electricity supply industry. In July 2025, the government ruled out any immediate increase in electricity tariffs while working to improve generation and address financial obligations within the sector.

Additionally, the government introduced measures to resolve accumulated debts in the electricity value chain. Plans were announced to regularize electricity tariffs for customers in Bands A, B, and C to enhance efficiency and reliability in the power sector.

NERC also instructed electricity distribution companies (DisCos) to ensure that Band A customers receive 20 hours of daily power supply.