NERC says Nigeria’s power tariff was Africa’s cheapest in 2025

Nigeria recorded the lowest average electricity tariff among 14 selected African countries in 2025, with an average allowed end-user tariff of N124.30 per kilowatt-hour (kWh), according to the Nigerian Electricity Regulatory Commission (NERC).

NERC disclosed this in its 2025 annual report, which compared Nigeria’s average allowed end-user tariff with electricity rates in selected African countries, predominantly in West Africa.

The commission said Nigeria’s average tariff was equivalent to $0.08/kWh, compared with an average of $0.19/kWh across the other countries surveyed.

What the report is saying

NERC said Nigeria’s average electricity tariff was 42.11% of the average rate recorded across the other selected African markets.

• South Africa recorded the highest average tariff at $0.27/kWh, equivalent to N399.73/kWh.
• Sierra Leone followed at $0.25/kWh, while Mali recorded $0.23/kWh.
• Burkina Faso, Kenya, Gabon and Togo each recorded an average tariff of $0.22/kWh.
• Other markets included Ghana at $0.18/kWh, Rwanda at $0.18/kWh, Uganda at $0.16/kWh, Namibia at $0.15/kWh, Ivory Coast at $0.14/kWh and Mauritius at $0.13/kWh.

NERC’s comparison shows that electricity tariffs in the selected markets were generally higher than Nigeria’s average allowed rate during the period.

Get up to speed

The tariff comparison comes as Nigeria continues to address the financial pressures affecting the electricity supply industry.

In July, the Federal Government ruled out an immediate increase in electricity tariffs as efforts continued to improve generation and address financial obligations across the sector.

The government has also introduced measures aimed at resolving accumulated debts owed within the electricity value chain.

The Federal Government has taken steps to address longstanding financial obligations in the power sector while maintaining its position on electricity tariffs.

• In April, President Bola Tinubu approved a N3.3 trillion payment plan to settle longstanding debts in the power sector under the Presidential Power Sector Financial Reforms Programme.
• In October 2025, the Federal Government concluded frameworks for a N4 trillion government-backed bond to settle arrears owed to power generation companies and gas suppliers.
• In February, Tinubu directed ministries, departments and agencies to rely on existing electricity sector laws to determine how power subsidy costs would be shared among the federal, state and local governments in the 2026 budget.

What you should know

In 2025, the Federal Government announced plans to regularise electricity tariffs for customers for Band A, B and C to ensure a more efficient and reliable power sector.

• In February 2025, Eko Electricity Distribution Company (EKEDC) officially commenced the distribution of free prepaid meters to Band A customers within its coverage areas as part of the Meter Acquisition Fund (MAF) scheme, as reported by Nairametrics.

In November 2024, the Nigerian Electricity Regulatory Commission (NERC) asked electricity distribution companies (DisCos) to ensure Band A customers receive the required 20 hours of daily power supply.