Nigerians will pay higher tariff for power in 2021, going by promises made by the Federal Government to the International Monetary Fund while seeking the $3.4bn emergency financial assistance recently approved for Nigeria.
The Executive Board of the IMF approved the Rapid Financing Instrument, which the Federal Government plans to use to address the economic impact of the COVID-19 pandemic in the country.
Part of the promises made by Nigeria to secure the loan from the global donor is that Nigerians would pay full cost-reflective tariff for power in 2021.
The Federal Government also told the IMF it intends to cap electricity tariff shortfalls to N380bn in 2020.
Earlier this year, the Nigerian Electricity Regulatory Commission approved an increase in electricity tariff for the 11 electricity distribution companies in Nigeria.