Nigerias electricity regulator on Wednesday approved an increase in electricity tariffs for wealthier consumers in Africas most populous nation, it said in a statement.
The vice chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, said the increase took effect immediately.
The commission has approved a rate review of 225 naira per kilowatt hour from a maximum of 68 naira per kilowatt hour for just under 15% of the customer population in the Nigerian electricity supply industry, Oseni said.
The increase relates to cutting the 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.
Nigeria last reviewed electricity tariffs in 2020, Onanuga said, adding the proposed increase would help businesses recover costs and boost investment.
