In a bold step to boost Nigeria’s electricity transmission network, the Nigerian Electricity Regulatory Commission (NERC) has established a Transmission Infrastructure Fund (TIF), to be financed through a N2.17 per kilowatt-hour (kWh) charge on energy consumed.
This initiative was disclosed in the May 2025 Multi-Year Tariff Order (MYTO) released on Tuesday. According to the Commission, the TIF is aimed at funding key projects that will strengthen transmission services within the Nigerian Electricity Supply Industry (NESI).
“The Order (MYTO May 2025) provides for the establishment of a Transmission Infrastructure Fund to support the financing of essential transmission infrastructure projects and innovative initiatives,” NERC stated.
The Commission explained that the fund will be centrally managed and could be used to secure vendor financing and public-private partnerships (PPP) to close critical infrastructure gaps in the grid.
“A provision of N2.17/kWh of energy delivered to grid off-takers has been made as a contribution toward building the TIF in 2025,” the document noted.
Despite the new levy, NERC confirmed that electricity tariffs across all customer bands will remain unchanged for May. Band A customers will continue to pay N209.5/kWh, while Bands B to E will retain the frozen rates set in December 2022.
Commenting on the development, Executive Director of PowerUp Nigeria, Adetayo Adegbemle, clarified that the TIF will not lead to higher electricity bills for consumers.
“It’s similar to the Meter Acquisition Fund already embedded in MYTO. The N2.17 is a market contribution, not a direct cost to consumers,” he said.
He stressed the importance of proper management of the fund. “The main challenge is implementation. The fund must be directed at projects that genuinely improve transmission infrastructure,” Adegbemle added.
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