Electricity generation companies (GenCos) in Nigeria have formally appealed to the Nigerian Electricity Regulatory Commission (NERC) for an immediate review of electricity tariffs.
This request follows the Federal Government’s recent upward adjustment of the domestic base price of natural gas supplied to power producers.
The companies have cautioned that any delay in implementing the necessary changes could intensify existing liquidity constraints and create further imbalances throughout the power sector value chain.
The increase in gas prices, effective from 1 April 2026, directly raises the cost of fuel for thermal power plants, which constitute the majority of Nigeria’s electricity generation capacity.
GenCos argue that without a corresponding tariff adjustment, their operational viability will be severely undermined, potentially leading to reduced generation output and heightened financial strain across the industry.
Stakeholders emphasise that cost-reflective pricing remains essential for sustaining investments and improving overall service delivery in the sector.
This development underscores the interconnected challenges facing Nigeria’s power sector, where fluctuations in gas pricing continue to exert significant pressure on electricity costs.
As the regulatory body evaluates the GenCos’ submission, industry observers anticipate that a tariff revision may soon become necessary to maintain stability and prevent further distortions in the market.
