From Bamigbola Gbolagunte, Akure
Recent research conducted by experts in the energy and power sector has revealed a shift from grid electricity to solar energy by most households in the country.
Reports presented by experts at a recent conference themed “Balancing electricity tariffs and consumers’ wallets: Insights from Nigerian households and firms’ ability to pay”, organised by the Nigerian Institute of Social and Economic Research (NISER), showed that many households in Nigeria have adopted solar energy.
The report showed that households and firms can barely cope with a major shift which occurred when the Nigerian Electricity Regulatory Commission (NERC) introduced a supplementary tariff review for Band A electricity customers in April 2024.
googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-1718806029429-0’); });
This claim was a fallout of an evidence-based study conducted by NISER, which, among other things, revealed that Band A households receive an average of 10 hours of electricity per day, below the 20-hour benchmark, with their monthly grid electricity expenditure rising from N17,647.49 to N34,942.04.
While presenting the outcome of the study, Dr Iyabo Olanrele said, “The study discovered that firms spend 82 per cent of monthly turnover on production costs, mainly due to the electricity tariff.”
She added that “although 87.5 per cent reported moderate electricity supply improvement, it is still below the 20-hour requirement.”
“Grid electricity expenditure rose by 92.2 per cent due to the tariff hike, which 67.5 per cent of firms found unaffordable, and large-scale and high-input-cost firms were less able to afford the increase, while older firms showed more resilience.”
According to Dr Olanrele, the study showed coping strategies adopted by households and firms in the face of the challenges posed by the increase in tariffs.
She said, “While households adopt switching to solar, inverters, and energy-efficient appliances, which not all can afford, many firms take to renewable energy use, energy-saving measures, and efficient technologies, with some firms remaining undecided.”
Also, Prof. Antonia Simbine said, “The theme of the seminar fully aligned with the Renewed Hope Agenda of the Federal Government, which places energy security, affordability, and sustainability at the heart of Nigeria’s economic transformation.”
She added that “this conversation is not just about electricity tariffs. It is about livelihoods, industrial competitiveness, and the pathway to national development. The Renewed Hope Agenda challenges us to design policies that make electricity not only reliable but also accessible and affordable, enabling households to thrive and businesses to compete globally.”
The post Nigerian households turn to alternative energy, NISER finds appeared first on The Sun Nigeria.
