Nigerians struggle as electricity bills consume over half of minimum wage

Amidst a newly announced minimum wage of ₦70,000 in Nigeria, many citizens find it increasingly difficult to keep up with living expenses as electricity bills now consume 57% of the average minimum wage earner's salary.

A 300% hike in electricity tariffs has left low-income families and businesses struggling to make ends meet.

A recent report by the Foundation for Investigative Journalism (FIJ) reveals the financial strain on workers. Ayodele Dipo, a civil servant, shared his experience: "Before this hike, ₦5,000 worth of electricity lasted me two to three months. Now, it barely lasts a week. The government needs to address this because it's eroding the benefit of the new minimum wage."

In April, the Nigerian Electricity Regulatory Commission (NERC) raised the electricity rate for Band A customers, those receiving 20 or more hours of power daily, from ₦66 to ₦225 per kilowatt-hour.

Although this was initially set to impact only 15% of customers, reports indicate that many were shifted to Band A without notice, raising questions about transparency.

Joe Abah, a financial analyst, echoed this sentiment on social media: "I now spend ₦100,000 monthly on electricity that barely lasts a week. NERC's approach lacks transparency and fairness," he stated.

The tariff increase has disproportionately affected low-income families and small businesses. Kenneth Enobong, a security guard, explained the difficult choices they face. "We need to pay for food, healthcare, and children's education. Electricity can wait, but basic needs can't."

Dr. Pogu Bitrus of the Middle Belt Forum called for a reassessment of the government's energy policies.

"Policies like this should be reassessed to prevent undue burden on Nigerians," he said, noting the broad demographic impact of the tariff hike.

As public outcry grows, Nigerians are calling for urgent government intervention to address rising living costs and relieve the mounting pressure on everyday citizens.