Nigeria's electricity prices have seen significant fluctuations, with a notable 200 percent increase in grid tariffs for Band A customers in April 2024. This analysis compares the costs of electricity from diesel, petrol, and gas generators against the grid tariff. Diesel generators, at N967/kWh, are the most expensive, nearly five times the cost of grid electricity. Petrol generators, costing N553/kWh, are over twice as expensive as grid electricity. Gas generators are more economical at N281/kWh, but still 36% costlier than grid electricity. Despite the recent increase, grid electricity at N206/kWh remains the cheapest option.

To maximize the grid's economic benefits, Nigeria must invest in enhancing transmission and distribution infrastructure, reducing losses, and ensuring reliable power delivery. This will boost productivity, create jobs, attract investments, and improve quality of life, solidifying the grid's role as the most cost-effective electricity source for the nation.