Nigeria Recorded Africa’s Lowest Power Tariff in 2025 – NERC

Nigeria Recorded Africa’s Lowest Power Tariff in 2025 – NERC

Nigeria recorded the lowest average electricity tariff among 14 selected African countries in 2025, according to the Nigerian Electricity Regulatory Commission (NERC).

NERC’s annual report showed Nigeria’s average allowed end-user tariff was ₦124.30 per kilowatt-hour (kWh), equivalent to $0.08/kWh, compared with an average of $0.19/kWh across the other countries surveyed.

The commission said Nigeria’s tariff represented just 42.11% of the average rate in the selected markets. South Africa recorded the highest average tariff at $0.27/kWh (₦399.73/kWh), followed by Sierra Leone ($0.25/kWh) and Mali ($0.23/kWh).

Other countries included Burkina Faso, Kenya, Gabon and Togo ($0.22/kWh each), Ghana and Rwanda ($0.18/kWh), Uganda ($0.16/kWh), Namibia ($0.15/kWh), Ivory Coast ($0.14/kWh) and Mauritius ($0.13/kWh).

The comparison comes as Nigeria continues to grapple with financial pressures in the electricity sector.

In July 2025, the Federal Government ruled out immediate tariff increases while working to improve generation and address debts.

President Bola Tinubu approved a ₦3.3 trillion payment plan in April 2025 to settle longstanding debts in the sector, followed by frameworks for a ₦4 trillion government-backed bond in October 2025 to clear arrears owed to generation companies and gas suppliers.

The government also directed ministries and agencies to share subsidy costs under the 2026 budget, while regularising tariffs for Band A, B and C customers.

NERC has mandated DisCos to ensure Band A customers receive 20 hours of daily supply, alongside free prepaid meter distribution under the Meter Acquisition Fund scheme.