The Minister of Power, Sale Mamman, said the proposed electricity tariff increase by the federal government will kick off in July.
Mr Mamman said the subsidy incurred in order to maintain the current tariff level is unsustainable.
In January, the Nigerian Electricity Regulatory Commission had announced that there would be an upward review of electricity tariff across the country from April 1.
However, it directed electricity distribution companies to suspend the proposed tariff increase in March due to the COVID-19 pandemic.
Stakeholders in the electricity sector have long clamoured for the need for cost-reflective tariffs to ensure a self-sustaining sector that is not dependent on subsidies and bailouts.
According to Usman Mohammed, former managing director of the Transmission Company of Nigeria , Nigeria has the cheapest electricity tariffs in West Africa.