The President of the Nigerian Association for Energy Economics, Dr Hassan Mahmoud, has called for electricity tariff reforms that balance costs with reliable service delivery.
Speaking at the Nigerian Institute of Social and Economic Research (NISER) seminar in Ibadan, Dr Mahmoud said while regulators emphasise cost-reflective tariffs, consumers expect “service-reflective benefits.”
“Households represent living standards and human development, while firms represent production and competitiveness. Both are crucial to aggregate demand and supply. If tariffs undermine either, the economy will suffer,” he warned.
Dr Mahmoud, a former central banker, cautioned that inconsistent tariff policies risk deterring investment in the power sector. He cited the collapse of a $15 billion energy investment after tariff reviews were halted by a court injunction as an example of instability in the industry.
He urged NISER to ensure its research is translated into actionable policy briefs for the government, saying reforms must prioritise equity, investor confidence, and sustainability.
The intervention comes amid growing debate over rising electricity tariffs in Nigeria, which households and businesses say are increasingly unaffordable.
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