Video - Nigeria, China partner to build EV plants

Nigeria is set to embark on a groundbreaking partnership with China to drive the adoption of electric vehicles (EVs) in the country. The Chinese Ambassador to Nigeria, Yu Dunhai, revealed plans to establish EV factories and other manufacturing ventures in Nigeria through collaboration between the two nations.

CGTN

Related story: World’s largest electric vehicle-producing country set to establish an EV plant in Nigeria

Solar power producer Sun King targets triple growth in Nigeria

A Kenya-based solar power company is banking on using an $80 million loan from the World Bank’s private investment arm to meet its target of tripling sales in the world’s most electricity-deprived country within the next few years.

For nearly two decades, Sun King has sold solar-powered electronics to African households and small businesses with unreliable connections to grids, spreading full product payment over up to two years. Its kits are made in China and are now available in 11 African countries, including Nigeria where it has sold 2 million kits mostly within the last three years, founder and chief executive officer T. Patrick Walsh told Semafor.

Nigeria is where Sun King sees “the lowest rates of non-payment” for its products and is its fastest-growing market, Walsh said. Having concluded a deal this month for an $80 million loan from the International Finance Corporation (IFC) and a Nigerian bank, the company plans to rapidly scale up.

“We are probably going to grow in Nigeria by at least a factor of 3 from where we are today,” Walsh told Semafor. Tanzania, Malawi, and Togo are other markets where Sun King expects growth to speed up, he said.

Despite its vast stores of natural gas, Nigeria has the highest number of electricity-deprived people of any country in the world, according to the World Bank and International Energy Agency. Sun King is aiming to reach the nearly 90 million Nigerians estimated to be without electricity.

Its operation relies on 9,000 agents whose job it is to physically reach potential customers living mostly outside of Lagos and the capital city Abuja. A network of 85 walk-in outlets act as touch points for after sales support.

The company is replicating a model that has served it in Kenya, where an estimated one in five households use a solar product. On a continent where more than half a billion people are without electricity — prompting international efforts like the Mission 300 agenda to provide 300 million people in sub-Saharan Africa electricity access by 2030 — Walsh is convinced that “the pathway for people to get their first connection is through solar.”

Solar-based electricity remains a pricey proposition for many in Africa. The upfront cost of setting up panels, batteries, and an inverter to provide half-a-day of power for a Nigerian household can be up to $4,000, which could make the service out of reach for a minimum wage earner.

Sun King learned early that its services were “not going to scale without access to finance for the end customer,” its CEO said. Offering a payment plan spread over a year has made it easier for customers to buy products, but affordability remains the company’s “biggest challenge to getting these products out there,” he said.

Walsh believes they have produced evidence of demand and adoption to secure multimillion-dollar financing deals, like the one with the IFC. In 2021, the company received a $75 million loan to expand operations in Kenya from a group of lenders including South Africa’s Standard Bank, and British International Investment, the UK’s development financier.

The loans are denominated in the local currencies, naira and Kenyan shillings, in each case. It helps the company hedge against foreign exchange volatility that makes it unfavorable to fund local currency assets with foreign currency debt, said chief financial officer Krishna Swaroop.

“We cannot solve macro-economic instability, but local currency financing makes our business stable in order to continue working and expanding,” he said.

By Alexander Onukwue, Semafor

World’s largest electric vehicle-producing country set to establish an EV plant in Nigeria

The initiative is a huge step forward for Nigeria's industrialization aspirations and reinforces Beijing's expanding presence in Nigeria, in a year when the East Asian country has been very active within Africa’s largest oil-producing country.

This new development was made known during a courtesy visit by China's Ambassador to Nigeria, Yu Dunhai, to Dr. Dele Alake, Minister of Solid Minerals Development.

During the visit, Ambassador Dunhai underlined the need for further collaboration between the two countries in unleashing Nigeria's solid minerals potential, a crucial component in EV battery production, and propelling Nigeria's industrial growth.

Dunhai also stated that China has always recognized Nigeria as an important partner in its foreign strategy.

The Chinese ambassador mentioned the recent meeting between Presidents Bola Ahmed Tinubu and Xi Jinping, during which both leaders decided to upgrade Nigeria-China bilateral relations to a comprehensive strategic partnership, paving the way for considerable economic and technical collaboration.

Dr. Alake, in response noted that the Federal Government has granted authority for China to develop electric car manufacturing factories in Nigeria, as he emphsized the idea that Nigeria is open for business.

He asked that the ambassador persuade Chinese businesses to make full-cycle investments in Nigeria, from extraction to processing, as reported by the Punch.

“For years, our minerals have been exported raw to fuel foreign industrialisation. That must change, Dr. Alake stated.

“We now prioritise local processing to drive Nigeria’s development. For instance, with the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries,” he added.

“Plans are underway to establish electric vehicle factories and other manufacturing ventures in Nigeria.

Chinese companies are already deeply involved in Nigeria’s mining sector, from exploration to processing,” Dr. Alake continued.

“We aim to deepen this collaboration, especially in line with President Tinubu’s eight priority areas, notably economic diversification through solid minerals,” he added.

Deals between China and Nigeria in 2025 so far

The EV announcement follows a flood of Chinese investments and strategic engagement with Nigeria so far in 2025.

In April, the National Sugar Development Council (NSDC) inked a $1 billion agreement with Chinese company SINOMACH to build a large-scale sugarcane production and processing facility.

Mr. Kamar Bakrin, NSDC Executive Secretary, told the News Agency of Nigeria (NAN) that the investment will alter Nigeria's sugar sector and strengthen China's strategic footprint in the nation.

216 Chinese businesses traveled to Nigeria in March to look for potential investment opportunities. Interestingly, 74 of them specifically indicated interest in Nigeria's oil industry, indicating China's intention to diversify its holdings in the nation's important sectors.

A new shipping route that provides an exceptional 27-day transit time between Shanghai and Lagos began in February when the MV Great Cotonou, a Con-Ro vessel from China, arrived at the PTML facility in Lagos, West Africa's largest multipurpose RO/RO facility.

It is anticipated that this innovation would transform the logistics of regional trade.

In January, the China Development Bank approved a $254.76 million loan for a major railway project in Nigeria, expanding the country's railway modernization program as part of China's Belt and Road Initiative.

By Chinedu Okafor, Business Insider Africa

Nigeria’s Arnergy Solar Secures $18 Million Series B Round to Scale Solar Deployments, Expand Access in Key Sectors

Arnergy Solar, a leading Nigerian renewable energy company specializing in distributed solar power solutions, has successfully closed an $18 million Series B funding round to accelerate its solar deployment initiatives and expand its footprint across critical sectors.

The funding round was led by CardinalStone Capital Advisers Growth Fund (CCA-GF), with British International Investment (BII) joining as a new investor with a $3 million commitment. The round also drew continued backing from existing investors including Norfund (the Norwegian Investment Fund for Developing Countries), Breakthrough Energy Ventures (BEV)—founded by Bill Gates, EDFI Management Company (EDFI MC), and Shell-backed All On.

The $18 million raise includes a $15 million Series B extension and a previously closed $3 million Series B1 round led by All On. This brings Arnergy’s total capital raised to date to over $27 million, following its $9 million Series A in 2019 that included support from BEV, Norfund, ElectriFI, and All On.

The new capital is earmarked for deployment of 12,000 additional solar systems by 2029, expansion of Arnergy’s rent-to-own solar financing model, and sector-specific growth in healthcare, education, and small and medium-sized enterprises (SMEs). The company also plans to leverage strategic partnerships to strengthen its distribution network and increase energy access across Nigeria.

Legal advisory on the deal was provided by Aluko & Oyebode, with Partner Oludare Senbore leading the transaction, supported by Zacheus Akanni, Esther Yugbovwre, and Precious Odina.

Arnergy’s solar systems play a vital role in closing Nigeria’s energy access gap by offering clean, reliable, and affordable off-grid power to underserved communities and businesses. This latest investment underscores investor confidence in the company’s scalable model and its role in driving Nigeria’s energy transition.

By Kavitha, Solar Quarter

Video - Nigeria significantly cuts electricity subsidies, sparks public discontent

The Nigerian government announced a 35 percent reduction in electricity subsidies, following tariff hikes for major consumers implemented in April last year. While the move has reportedly saved the government millions of dollars, many Nigerians are unhappy as they continue to struggle with high energy costs and unreliable distribution.

CGTN

Nigeria cuts electricity subsidies by 35% after tariff hike

Nigeria has achieved a 35% reduction in electricity subsidies following a tariff increase implemented last year for some users, Power Minister Adebayo Adelabu said on Thursday, easing some pressure on public finances in Africa's most populous nation.

Nigeria's power sector is burdened by a failing grid, gas shortages, high debt and vandalism, leading to a reliance on expensive generators for many.

The country was spending nearly 200 billion naira ($125.01 million) monthly on electricity subsidies because existing tariffs were not commercially viable.

The government last year eliminated subsidies for the 15% of customers classified as heavier users, including households and businesses consuming larger amounts of electricity.

Adelabu told a press briefing in Abuja that this targeted tariff adjustment has yielded significant results, with "the market generating an additional 700 billion naira in revenue, reflecting a 70% increase".

This has helped alleviate the substantial financial strain on public finances, improve generation, and reduce the government's tariff shortfall from 3 trillion naira to 1.9 trillion naira.

But the power sector still faces deep-rooted challenges. The country has an installed capacity of 13,000 megawatts, but typically produces only about a third of that, exacerbating the reliance on costly alternatives.

This situation is compounded by state-controlled power tariffs that have historically been too low for distribution companies to cover their costs and pay generating companies, leading to ballooning debts within the sector.

Debt owed to power generating companies has reached 4 trillion naira ($2.50 billion), prompting threats of plant shutdowns.

Adelabu said there were plans underway to help ease the debt burden, with the government intending to pay half of the debt this year through budgetary allocations and promissory notes that companies can discount as needed.

By Isaac Anyaogu, Reuters

Nigeria suffers power outage after grid failure, power companies say

Nigeria suffered a widespread electricity blackout after its national grid collapsed on Wednesday, the country's power distribution companies said.

Nigeria's grid is prone to failure and has this year suffered partial or total collapse at least 10 times, mainly due to faults and vandalism at power installations.

Distribution companies across Nigeria, also known as Discos, said in separate statements that the grid had failed at around 1233 GMT and they hoped electricity would be restored soon.

Data from the Transmission Company of Nigeria showed electricity generation plunged from 3,087 megawatt before the grid collapse, to zero as of 1400 GMT. 

Reuters 

Related story: Video - Power shortages, rising fuel costs accelerate shift to solar in Nigeria

 

Video - Power shortages, rising fuel costs accelerate shift to solar in Nigeria

Many small businesses now rely on solar for their energy needs after public electricity costs surged. Solar companies are easing adoption by offering installment payment options, making it more accessible.

CGTN

Related story: Peter Obi Urges FG To Resolve Power Crisis Challenges

 

Peter Obi Urges FG To Resolve Power Crisis Challenges

Former presidential candidate Peter Obi has called on the federal government to proffer lasting solutions to the power crisis in the country.

Obi made the call on his X handle while raising concerns about the ongoing power crisis following another collapse of the national grid.

The call came after Nigerians were plunged into a fresh round of darkness following another collapse of the national power grid.

Since January 2024 till date, the grid has collapsed 10 times, and three times in October alone.

Speaking on the issue via a statement on Wednesday via X, Obi contrasted Nigeria’s struggles with power supply to South Africa’s recent success in achieving seven months of uninterrupted electricity.

He said, “Again, yesterday the now regular news came that the National Grid had collapsed once again. Just a few days ago, on the 25th of October, South Africa that was the second-largest economy in Africa behind Nigeria until recently, with a quarter of our population, celebrated seven months of uninterrupted power supply.

“South Africa generates and distributes about 40,000 MW of electricity, while Nigeria struggles to generate and distribute just 10% of that.”

“Is there any tribe in Nigeria that enjoys uninterrupted power supply like South Africa? I am labelled a tribal bigot. When I ask if any religion enjoys special privileges in this crisis, I am called a religious bigot. But I will continue to speak the truth about our situation today,” he said.

“The fact remains that we are all suffering equally from this failure,” he said.

Obi urged Nigerians to move past “primordial sentiments” and instead focus on electing leaders who can drive the country towards development.

He said, “The fact remains that we are all suffering equally from this failure. The solution lies not in tribal or religious affiliations but in visionary leadership and a shared commitment to progress.

“We must set aside these primordial sentiments and elect leaders who are competent, capable, and have the vision to transform our nation from a consumer-driven economy to a productive one by investing our meagre resources in critical areas of development like health and education, lifting our people out of poverty, and ensuring increased electricity production and distribution.”

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Related story: Nigeria's power grid partially collapses again, causing blackouts

Nigeria's power grid partially collapses again, causing blackouts

Nigeria's national grid suffered a partial collapse on Tuesday, the state power transmitter said, marking the ninth incident this year to have caused power outages across the country.

The Transmission Company of Nigeria (TCN) said the grid experienced a disturbance at around 1252 GMT, triggered by a series of line and generator trips destabilising the system.

While some regions, including the capital Abuja, regained power about an hour after the collapse, outages continued elsewhere.

"TCN engineers are already working to quickly restore bulk power supply to the states affected by the partial disturbance," spokesperson Ndidi Mbah said.

Blackouts are frequent in Nigeria, Africa's most populous country with over 200 million people, due to ageing power infrastructure, vandalism and inadequate gas supply for its thermal plants, which account for over 75% of output.

Although Nigeria has the infrastructure to generate about 13,000 megawatts of power, its creaking grid can only distribute a third of it, forcing businesses and households to run costly fuel generators. 

By Camillus Eboh, Reuters 

Related story: Nigeria's state transmission company restoring power after grid collapse

 

Nigeria's state transmission company restoring power after grid collapse

The Transmission Company of Nigeria says it is working to restore power after blackouts engulfed the country following another collapse of the power grid on Monday night.

Power generation fell to zero and by Tuesday morning some plants in the capital Abuja and parts of the commercial city were coming online. Daily average supply has hovered around 4,500 megawatts in recent times until the sixth collapse this year.

Nigeria's grid has shut down due to aging power infrastructure, vandalism and inadequate gas supply for its thermal plants which accounts for over 75% of output. 

Reuters

Related story: Millions in Nigeria have little to no electricity. It’s straining businesses and public services

 

Millions in Nigeria have little to no electricity. It’s straining businesses and public services

Dimly lit and stuffy classrooms stir with life every morning as children file in. Rays of sunlight stream through wooden windows, the only source of light. Pupils squint at their books and intermittently the blackboard as teachers try to hold their attention.

It’s a reality for many schoolchildren across Nigeria, where many buildings don’t have access to the national electricity grid. In Excellent Moral School in Olodo Okin in Ibadan, “the entire community is not connected, including the school,” said school founder Muyideen Raji. It acutely affects pupils, he said, who can’t learn how to use computers or the Internet and can’t study in the evenings.

About half of Nigeria’s more than 200 million people are hooked up to a national electricity grid that can’t provide sufficient daily electricity to most of those connected. Many poor, rural communities like Olodo Okin are off the grid entirely.

In a country with abundant sunshine, many are looking to solar energy to help fill the gaps, but getting risk-averse investors to finance major solar projects that would give Nigeria enough reliable energy is an uphill struggle. It means that millions in the country are finding ways to live with little to no electricity.
 

Lots of sun, few funds

Studies have shown that Nigeria could generate much more electricity than it needs from solar energy thanks to its powerful sunshine. But 14 grid-scale solar projects in the northern and central parts of the country that could generate 1,125 megawatts of electricity have stalled since contracts were signed in 2016.

Those trying to develop solar projects in the country blame interest rates for borrowing which can be as high as 15 percent, two to three times higher than in advanced economies and China, according to the International Energy Agency.

That means it’s more costly for solar companies to work in Nigeria or other developing nations than in rich countries. Africa only has one-fifth the solar power capacity of Germany, and just 2% of global clean energy investments go to the continent.

“The same project put up in Nigeria and Denmark; the Danish project will get funding for 2 to 3 percent” interest rate, said Najim Animashaun, director of Nova Power, one of the stalled solar projects. Meanwhile he struggles to get loans even with interest rates of 10 percent or higher, “even though my solar project can produce two and half times more power,” than a Danish one.

Nigeria also does not set so-called cost-reflective tariffs, meaning the price consumers pay for electricity doesn’t cover the costs to produce and distribute it. This means distribution companies can’t fully pay producers and the industry relies on government interventions to stay afloat, scaring off lenders from investing in the solar industry.

Currently, power producers say they are owed up to 3.7 trillion Naira ($2.7 billion) by the government, making it difficult to meet obligations to their lenders and contractors.

One option would be getting World Bank guarantees that would put investors at ease and make them more willing to put money into solar projects. But the government is wary of signing up to anything that would force them to pay large sums even if electricity from the projects does not get to consumers because of inadequate transmission and distribution infrastructure.

Without World Bank guarantees “nobody will develop or finance a project with a government subsidy, because it can dry off,” said Edu Okeke, the managing director of Azura Power. Azura Power has a stake in the now-stalled 100 megawatt Nova solar project in Nigeria’s northern Katsina State.
 

Stop-gap solutions

With less than 8,000 megawatts of capacity and an average supply of less than 4,000 megawatts — less than half of what Singapore supplies to just 5.6 million people — power outages are an everyday occurrence in Nigeria.

Communities like Excellent Moral School’s in Ibadan that have no access to electricity are often surrounded by more fortunate ones that are connected to the grid but experience frequent outages and have to use gasoline and diesel-run private generators.

With the long-running petroleum subsidies now removed, many households, schools, hospitals and businesses struggle with the cost of the fuel for their backup generators.

“We have stopped using a diesel generator as an alternative due to costs,” said Abdulhakeem Adedoja, the head of Lorat Nursery and Primary School in Ibadan. He added that although the school is in an Ibadan area that is connected to the grid, they could go two weeks without a power supply.

The problem is not just the lack of electricity for computer-aided learning, proper lighting, and fans to make classes less stuffy for pupils and teachers, but also that students are unable to complete their school assignments at home, Adedoja said.

For more energy-hungry small businesses like restaurants, they either close shop or continue with alternative power generation, incurring high costs that hurt their capacity for expansion.

Ebunola Akinwale, the owner of Nature’s Treat Cafe in Ibadan, said she pays 2.5 million Naira ($1,700) monthly to power backup generators in her four branches.

“If nothing changes, I probably would have to close one or two branches,” she said, though she is planning to go solar which she enthuses will help us cut “pollution from the diesel (generators).” She’s in talks with her bank for a low-cost loan package specially designed for young women entrepreneurs to finance the solar alternative.

However, not every business and household has such access or can afford the upfront capital for a private solar system. School heads Raji and Adedoja said they find the costs prohibitive.
 

Finding a way forward

The stalled solar projects aren’t happening as finances don’t add up, but even for other sources of electricity generation, Nigeria struggles to attract desperately needed private financing.

The power minister, Adebayo Adelabu, said in May that in order to address the financial crisis affecting the electricity sector, prices must reflect the true costs of service because a broke “government cannot afford to pay 3 trillion Naira ($2.4 billion) in subsidy.”

The government also insists that Nigerians paying fully for the electricity they consume would encourage investments in the sector.

There has been some pushback to that, as labor unions went on strike in early June in part to protest electricity tariff increases.

But businesspeople like Akinwale understand the government’s position because regularly supplied grid electricity, even without a subsidy, is “still cheaper and cleaner” than diesel for generators, she said.

If finances for grid-scale solar projects do not add up, the government should offer incentives such as tax relief and payment plans to encourage private solar adoption, Akinwale said. “Sunlight is there abundantly,” she said.

Former regulatory chief Sam Amadi doubts if consumers in Nigeria — where the minimum wage is 30,000 Naira ($20) a month — “can today pay for energy consumed without subsidy.” He also wants a policy that makes it more affordable to have smaller-scale solar projects dotted across communities, businesses and homes.

Until then, there are consequences to the frequent blackouts, he said.

“I have the story of a person who died in hospital because the electricity went out during operation,” he said. “Every day, we see the real-world effects of the lack of electricity.”

By Taiwo Adebayo, AP

Related stories: Generator fumes choke students to death in Nigeria

Video - Nigeria cuts back on electricity sales to neighboring countries

Video - Analysts say Nigeria not prepared for a shift from fossil-fuel vehicle

 

CGTN

Generator fumes choke students to death in Nigeria

At least seven university students have died after apparently inhaling fumes from a generator in a music studio in Nigeria's oil-rich Bayelsa state.

The young men are said to have worked late into Monday night and fell asleep in the locked studio with the generator still running.

They are suspected to have suffocated from carbon monoxide emissions but police say investigations are ongoing.

Many businesses and households in Nigeria rely on diesel- or petrol-powered generators because of inadequate power supply.

Six bodies were discovered on Tuesday morning, while one of them, who was found unconscious, was rushed to a nearby hospital but later died, local media reported.

Residents of the area raised the alarm when they peeped through the window of the studio and saw the bodies sprawled on the floor.

Police arrived and cordoned off the area after moving out the bodies in the Amarata area of Yenagoa - the Bayelsa state capital.

“Investigations are being carried out but based on what we have seen, carbon monoxide poisoning due to generator fumes is a possible cause,” police spokesperson Musa Mohammed told the BBC.

The victims were undergraduates from the state-owned Niger Delta University (NDU) in Amassoma, who were involved in the music recording business to support their education.

This is not the first time generator fumes have killed people in Nigeria, Africa's top oil producer.

In 2009, at least 13 family members, including four children, died after inhaling noxious fumes from their power generator while they slept in a remote village in south-eastern Imo state.

Nigerians rely on backup generators to cover about 40% of their electricity needs, according to a recent report by the International Energy Agency (IEA).

Grid power supplies are often erratic in Nigeria, despite its role as a major oil and gas producer.

President Bola Tinubu recently ordered all government agencies to purchase only vehicles and generators powered by natural gas as part of the country's efforts to transition to cleaner energy and cut high fuel costs.

By Mansur Abubakar & Wycliffe Muia, BBC

 

Video - Nigeria cuts back on electricity sales to neighboring countries

The move is designed to boost domestic supply for Nigerians. Nigeria exports a chunk of the power it generates to its neighbors, despite not having a stable electricity supply for customers at home.

CGTN

Related story: Video - Concerns over electricity rate hike in Nigeria

 

Taxi system fueled by electric vehicles in Nigeria

As climate change wreaks havoc around the world, the need for sustainable solutions grows more urgent. In Nigeria, a private company recently introduced an Uber-style taxi system made of approximately 200 electric vehicles. The company says the fleet is a step toward a greener future. Gibson Emeka reports from Abuja, Nigeria. Amy Reifenrath narrates.

By Gibson Emeka, VOA 

Related story: The eco-entrepreneur sparking the electric vehicle revolution in Nigeria

 

 

Video - Concerns over electricity rate hike in Nigeria

An increase in electricity prices by nearly three times has sparked a backlash in Nigeria. The decision to remove electricity subsidies is part of President Bola Tinubu's reform drive to ease pressure on the economy as the government targets up to 2.6 billion U.S. dollars from the subsidy removal.

CGTN

Related stories: Consumers in Nigeria upset at electricity rate hike

Nigeria to cut electricity subsidy to ease pressure on public finances

 

 

Consumers in Nigeria upset at electricity rate hike

A sudden hike in electricity rates in Africa's most populous country, Nigeria, has sparked a backlash.

Until now, Jude Okafor has spent an average $25 on electricity to run a frozen fish and meat business that he started in 2021. But since last week, when the government announced a rate hike of nearly 300 percent for electricity, Okafor says running his business has been tough.

"There is no escape. Light has gone high, fuel has gone high. And for a businessman, there's no way we can cope with that,” Okafor said. “If there's no light or fuel to ice our fish, what are we going to do? Our business is running down. This is [a] first-class act of wickedness."

The Nigerian Electricity Regulatory Commission (NERC) announced the price change last Wednesday and said only its bigger power consumers, about 15 percent overall, would be affected by the subsidy cut.

Authorities said consumers in that category enjoy up to 20 hours of electricity a day and that the rate hike was only fair to customers who receive fewer hours of light.

The decision to remove electricity subsidies is part of President Bola Tinubu's reform drives to ease pressure on the economy.

Authorities argue that state-controlled electricity rates are too low to attract new investors or allow distribution firms to recover their costs, leaving the sector with huge debts.

Economic analyst Ogho Okiti says the government’s move is a good one.

"The government is not able to pay those subsidies on time, and because they're not able to [pay] them on time, gas companies are withdrawing their gas supplies,” Okiti said. “The timing is right. I think the government had waited till April to do this because they expect power supply to improve from now because of [the] rainy season."

But the decision is being criticized by many, including businesses, manufacturers and workers' unions.

This week, the Abuja chapter of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, or NACCIMA, said the decision would threaten the survival of many thousands of businesses already struggling to cope with soaring inflation.

"First of all, the timing is wrong,” said Dele Oye, national president of the NACCIMA. “We all know that electricity is underpriced, but to some extent, there must be some level of subsidy. There's nowhere in the world where there's no subsidy. We cannot compete if we have to pay everything at market value when we don’t see market value service from the government. We do our roads. We do our security as investors."

Nigeria last revised electricity rates four years ago. Authorities say the country could save up to $2.6 billion from the subsidy removal.

But a similar reform applied on petrol last year worsened a cost-of-living crisis for many Nigerians after the annual rate of inflation rose to more than 30 percent — its highest level in three decades.

Critics will be watching to see how this newest subsidy removal unfolds.

By Timothy Obiezu, VOA

Related stories: Nigeria to cut electricity subsidy to ease pressure on public finances

Nigeria thrown into darkness as power grid collapses

Video - Nigeria suffers from most power cuts in the world

Nigeria to cut electricity subsidy to ease pressure on public finances

Nigeria plans to axe an electricity subsidy for 15% of consumers to reduce its 3.3 trillion naira ($2.6 billion) cost, part of a series of reforms to ease pressure on public finances, presidential spokesperson Bayo Onanuga said on Tuesday.

Onanuga said the government was under pressure to allow a price increase in the electricity sector as it only budgeted 450 billion naira for the subsidy this year.

He did not say when the tariff increase would come into effect, but said that when it did the government expected to save close to 1.1 trillion naira per year.

Nigeria last reviewed electricity tariffs in 2020, Onanuga said, adding the proposed increase would help businesses recover costs and boost investment.

"With the huge subsidy burden and high cost of gas ... the current electricity tariff is not realistic," he said.
President Bola Tinubu embarked on Nigeria's boldest reforms in decades last year after he scrapped a popular but costly fuel subsidy and allowed the currency to devalue sharply.

The reforms Tinubu hopes will revive growth in Africa's biggest economy have stoked inflation to more than 30% and worsened a cost of living crisis, angering workers.

Onanuga said only 15% of consumers, accounting for 40% of electricity consumption, would be affected.
Nigeria's power sector faces a myriad of problems including a failing grid, gas shortages, high debt and vandalism. The country has 12,500 megawatts of installed capacity but produces only about a quarter of that, leaving many reliant on expensive diesel-powered generators.

Also, state-controlled power tariffs are too low to allow distribution companies to recoup costs and pay generating companies - leaving the sector with ballooning debts.

Onanuga said the government would consider helping generating companies to offset around 1.5 trillion naira of debt owed to the country's bulk electricity purchaser.

By Felix Onuah, Reuters

Related stories: Nigeria thrown into darkness as power grid collapses

Video - Nigeria SMEs turn to alternative energy sources to address chronic power crisis

Nigeria thrown into darkness as power grid collapses

Nigeria was thrown into darkness on Thursday afternoon following the collapse of the electricity grid controlled from Osogbo, Osun State, around 4:32 p.m.

A source in one of the distribution companies (DisCo) said the feeders for most DisCos nationwide were out of supply.

The development, the source added, has left virtually all franchise areas for DisCos across the 36 states in darkness.

According to the source, as of 4p.m, the grid output was 2984 megawatts. But by 5 p.m., the 21 plants on the grid had zero output.

In February, a grid collapse also left the nation in darkness.

A last check with the source when filing this report revealed that Azura was the only plant on the grid with an output capacity of about 54 megawatts.

Egbin, Afam, Geregu, Ibom Power, Jebba, Kainji, Odukpani, and Olorunsogo, among other plants, all had zero output.

In November 2013, the federal government privatised all generation and 11 distribution companies, with the FG retaining the ownership of the transmission company. This was to improve efficiency in the sector.

However, since privatisation, the grid has collapsed more than 140 times.

By Olawunmi Ojo, Premium Times

Related stories: Video - Nigeria SMEs turn to alternative energy sources to address chronic power crisis

Video - Nigeria suffers from most power cuts in the world