Power
Evaluating electricity affordability and subsidies across Africa
GlobalPetrolPrices data from October 2026 highlights wide variations in electricity tariffs across the continent alongside growing fiscal pressures from state subsidies.
Key points
- Continental average electricity costs stood at $0.141 per kWh for homes and $0.134 per kWh for businesses in Q3 2026.
- Nigeria recorded residential and commercial rates significantly below continental benchmarks, alongside substantial federal subsidy liabilities.
- Several nations, including Cameroon, Tunisia and Egypt, are navigating financial and supply challenges despite lower tariffs.
Continental tariff overview
Data published by GlobalPetrolPrices indicates that average electricity costs across Africa reached $0.141 per kilowatt-hour for residential users and $0.134 per kilowatt-hour for commercial consumers during the third quarter of 2026. However, individual nations experience vastly different pricing structures, with Ethiopia and Angola registering some of the lowest household and business tariffs respectively.
Country-level dynamics and fiscal strains
In Nigeria, residential electricity costs $0.036 per kWh, while commercial supply is priced at $0.050 per kWh. According to the Nigerian Electricity Regulatory Commission, these regulated rates sit well below continental averages but generate a heavy financial burden for the federal government. Subsidy liabilities reached approximately N1.92 trillion in 2025, following a tiered tariff system introduced in 2024 to balance sector sustainability with consumer affordability.
Other nations face distinct operational hurdles. Cameroon plans to lift its state energy subsidy allocation in 2027 while expanding prepaid metering. Meanwhile, Tunisian authorities managed peak summer demand spikes through scheduled outages, and Egypt adjusted its tariffs to ease pressures on the state energy sector.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
62.5% of people in Nigeria had electricity in 2024Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
