Amanze Chinonye
A comparison of electricity prices between Nigeria and the United Kingdom shows a sharp contrast between headline tariffs and real affordability, revealing why electricity remains far more burdensome for Nigerian households despite lower unit costs.
According to data from Global Electricity Prices (2025) and ECoflow, households in the United Kingdom pay about $0.401 per kilowatt-hour (kWh) roughly ₦611 (using $1 = ₦1,366.06). In contrast, Nigeria’s average residential tariff stands at $0.036 per kWh, or about ₦55, making UK electricity over 11 times more expensive per unit than Nigeria’s.
Analysts note, however, that electricity affordability cannot be measured by price alone.
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Income Tells a Different Story
The national minimum wage in the UK is £1,953.60 per month, equivalent to approximately ₦3.63 million at the prevailing exchange rate. Nigeria’s minimum wage stands at ₦70,000 per month, highlighting a vast income gap between households in both countries.
When electricity costs are measured relative to income, the disparity becomes clearer. Assuming an average monthly consumption of 225 kWh:
- UK households on minimum wage spend about 3.79% of their income on electricity.
- Nigerian households on minimum wage spend roughly 17.68% of their income on electricity.
This means Nigerian households devote over four times more of their income to electricity than their UK counterparts, despite paying far less per kWh.
Affordability vs Price
Energy economists say the figures expose a broader structural issue. While electricity tariffs in Nigeria are among the lowest globally in dollar terms, low wages significantly weaken purchasing power, turning electricity into a major household expense.
The situation is further complicated by Nigeria’s unstable power supply, which often forces households to rely on generators and alternative energy sources costs not reflected in official tariff data.
- By unit price, electricity is far cheaper in Nigeria than in the UK.
- By income share, electricity is significantly more expensive for Nigerian households.
The comparison underscores a key reality: low tariffs do not automatically translate to affordability, especially in economies where wages remain depressed.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
