The Distributional Effect of Increased Electricity Tariff and Coping Strategies among Urban Households in Nigeria

This study investigates the impacts of a 240% increase in electricity tariffs on urban households in Nigeria, following the recent removal of electricity subsidies for certain high-consumption households. The research explores how these higher tariffs affect household expenditure, especially on food and cooking energy preferences. Using data from 450 households in Abuja, Enugu, and Lagos, the study employs ordinary least squares (OLS) regression to examine the relationship between food expenditure and electricity costs, ordered logit models to assess cooking energy choices, and multivariate probit analysis to identify household coping strategies.