This tariff issued by EERC has set a precedent, only ₦45 naira is captured for generation cost out of ₦112
Nigeria’s power generation companies (GenCos) have formally contested the Enugu Electricity Regulatory Commission’s (EERC) decision to lower Band A electricity tariffs from ₦209 to ₦160/kWh, set to take effect August 1, 2025. The Association of Power Generation Companies (APGC), led by CEO Joy Ogaji, asserts the move relies on “questionable subsidy assumptions” and jeopardises the power sector’s stability .
EERC, through Chairman Chijioke Okonkwo, defended the decision as “cost‑reflective,” factoring in the Federal Government’s ₦45/kWh generation subsidy against the actual ₦112 cost . Okonkwo stated:
“We reviewed their entire costs…to get an average price of N94…Breaking this across the various tariff bands means that Band A will be paying N160…”
Responding, Ogaji highlighted the lack of a formal subsidy policy, branding it “debt accumulation.” She warned:
“This tariff issued by EERC has set a precedent, only N45 naira is captured. This portends a bigger issue in the decentralisation of power.”
She noted GenCos are owed over ₦4 trillion, while the 2025 budget allocates ₦900 billion—insufficient to cover sector needs .