Comparative Analysis of Electricity Grid Tariffs Versus Generator Costs in Nigeria
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Abstract: The Nigerian electric power industry, pivotal for economic development, faces severe crises affecting its efficiency. This study provides a comparative analysis of electricity grid tariffs and generator costs over the past decade. The analysis reveals frequent tariff changes by the Nigerian Electricity Regulatory Commission (NERC) and rising generator costs due to increasing fuel prices and maintenance expenses. The study highlights the financial burden on Nigerian households and businesses reliant on generators. Data from NERC reports, Nigerian National Petroleum Corporation (NNPC) fuel price records, and industry studies indicate that generator costs have escalated more sharply. At the same time, grid tariffs have increased due to economic and policy changes. This disparity stresses the need for policy adjustments and improved monitoring to stabilise electricity costs and enhance service delivery. Recommendations urge immediate action from policymakers, energy industry professionals, and stakeholders to address the pressing issues.
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