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.
Tuesday, April 22, 2025
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.
Video - Nigeria food crisis deepens
Nigeria is in the grip of a worsening food crisis. Inflation is crippling farmers and traders, and millions face hunger. Despite a new emergency plan, critics say lasting solutions are still missing.
Video - Nigerian teen sets record with massive artwork
At just 15 years old, Kaneyachukwu Tagbo Okeke has made history with a painting that spans over 130,000 square feet. Titled “Impossibility is a Myth,” the Guinness World Record breaking artwork gives a voice to the nonverbal artist and a message of hope to the world.
Russia is set to initiate new shipping line with Nigeria
The service, which is scheduled to begin operations in mid-June, will be operated by Russia's A7 African Cargo Line.
Initially, two 700-TEU container ships will service the route, with future development plans aimed at Senegal, as reported by Sputnik.
According to Maxim Petrov, Russia's Trade Representative in Nigeria, the shipping line would facilitate the sale of Russian agricultural products, machinery, and transportation equipment to Nigeria.
In return, it will allow Russia to purchase cotton from fellow West African state, Mali, a crucial regional product with an annual yield of over 650,000 tons.
Simultaneously, Nigeria and Russia are strengthening military relations.
Initially, two 700-TEU container ships will service the route, with future development plans aimed at Senegal, as reported by Sputnik.
According to Maxim Petrov, Russia's Trade Representative in Nigeria, the shipping line would facilitate the sale of Russian agricultural products, machinery, and transportation equipment to Nigeria.
In return, it will allow Russia to purchase cotton from fellow West African state, Mali, a crucial regional product with an annual yield of over 650,000 tons.
Simultaneously, Nigeria and Russia are strengthening military relations.
Russia and Nigeria’s growing ties in 2025 so far
In March 2025, Russian Deputy Minister of Defense Yunus-bek Yevkurov and Nigeria's Chief of Defense Staff, General Christopher Musa, met to explore the extension of the two nations' current defense cooperation.
This military partnership stems from a 2021 deal under which Russia would supply training, logistics, and equipment to the Nigerian military.
Financial relations have also improved. In February 2025, Russia officially added Nigeria to the list of countries eligible for currency trading in its banking system.
Tunisia and Ethiopia were also included, bringing the total number of eligible African countries to seven and further integrating the region into Russia's financial efforts.
The previous list, authorized in September 2023, comprised Algeria, Egypt, Morocco, and South Africa.
This inclusion corresponds with Nigeria's admission to the BRICS group of nations as a partner country. Following South Africa, Nigeria became the second African nation and ninth member to achieve BRICS partner status in January 2025.
These initiatives, taken together, provide a picture of Russia and Nigeria's quickly changing relationship, one that is moving beyond rhetoric and into tangible cooperation.
In March 2025, Russian Deputy Minister of Defense Yunus-bek Yevkurov and Nigeria's Chief of Defense Staff, General Christopher Musa, met to explore the extension of the two nations' current defense cooperation.
This military partnership stems from a 2021 deal under which Russia would supply training, logistics, and equipment to the Nigerian military.
Financial relations have also improved. In February 2025, Russia officially added Nigeria to the list of countries eligible for currency trading in its banking system.
Tunisia and Ethiopia were also included, bringing the total number of eligible African countries to seven and further integrating the region into Russia's financial efforts.
The previous list, authorized in September 2023, comprised Algeria, Egypt, Morocco, and South Africa.
This inclusion corresponds with Nigeria's admission to the BRICS group of nations as a partner country. Following South Africa, Nigeria became the second African nation and ninth member to achieve BRICS partner status in January 2025.
These initiatives, taken together, provide a picture of Russia and Nigeria's quickly changing relationship, one that is moving beyond rhetoric and into tangible cooperation.
By Chinedu Okafor, Business Insider Africa
Friday, April 18, 2025
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'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.
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