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FG Rules Out Immediate Electricity Tariff Hike

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Power Minister Joseph Tegbe says the government will prioritise better supply, universal metering and fair billing while pursuing wider reforms across Nigeria’s electricity sector

The Federal Government has ruled out an immediate electricity tariff hike, with Minister of Power Joseph Tegbe saying the administration’s priority is to improve power supply, achieve universal metering and ensure Nigerians pay only for the electricity they consume.

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Also readPower Minister Promises Visible Electricity Improvements

Tegbe made the clarification on Friday in Lagos during a media roundtable on the government’s plans to reset Nigeria’s power sector, amid public concerns over the possibility of further increases in electricity prices.

The minister said the government was not pursuing a policy to raise tariffs beyond their current levels in the immediate term, arguing that consumers should first experience improvements in service delivery and greater transparency in billing.

“First, there is no policy by this administration to increase electricity tariffs beyond its current level.

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Our priority is not tariff increase in the immediate term. Our priority is service improvement, universal metering and ensuring Nigerians pay only for the electricity they actually consume,” Tegbe said.

He added that the government would continue to explore measures to protect vulnerable consumers while working to improve the financial sustainability of the Nigerian Electricity Supply Industry.

“Indeed, the Federal Government will continue to examine additional mechanisms for protecting vulnerable consumers whilst simultaneously improving the financial sustainability of the market,” the minister said.

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The announcement comes as the government pursues a broader reset of the electricity sector, with reforms targeting power generation, transmission, distribution and the financial obligations that have long constrained the industry.

Tegbe said the reforms were also designed to strengthen the national grid, restore investor confidence and create a more sustainable electricity market.

He pointed to the implementation of the Electricity Act as a key part of the strategy, noting that the legislation has opened opportunities for states to establish electricity markets that reflect their individual economic circumstances.

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The Federal Government is also advancing a Power Sector Bond initiative aimed at addressing legacy debts owed to power generation companies, gas suppliers and other participants across the electricity value chain.

Metering remains another central pillar of the government’s plan. Tegbe said the Presidential Metering Initiative would be strengthened as the administration moves towards universal metering and seeks to eliminate estimated billing.

The minister also announced the launch of the Power Force initiative, which is expected to engage 5,000 Nigerian youths in meter installation across the country while providing technical skills through the National Power Training Institute of Nigeria.

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Tegbe further disclosed that Nigeria had maintained electricity generation at about 5,000 megawatts over the preceding two weeks, attributing the improvement to better operational coordination, increased plant availability and closer collaboration among stakeholders in the power sector.

“Although much work remains, enhanced operational coordination, improved plant availability and better engagement across the value chain are beginning to produce measurable improvements,” he said.

The minister, however, cautioned that higher generation alone would not resolve Nigeria’s longstanding electricity challenges.

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He said sustainable improvement would require simultaneous progress in generation, transmission, distribution and the payment systems that support the electricity market.

As part of the transformation agenda, the government plans to undertake a comprehensive technical audit of the national transmission network and harmonise federal and state electricity regulation.

Strategic investments are also planned for the Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano transmission corridors, alongside a proposed “Super Grid Programme” designed to reinforce the country’s transmission backbone.

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The Federal Government’s approach reflects a shift towards addressing the structural weaknesses of the power sector while seeking to ease the financial burden on electricity consumers.

Tegbe expressed confidence that Nigerians would begin to notice visible improvements in electricity availability within the coming months.

He said the government expects a stronger grid, reduced technical losses, improved market discipline, wider electricity access and greater operational capacity to emerge over the next two to three years.

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Also readLagos Plans Bold End To Electricity Band System

For consumers, the immediate message is that the government is prioritising service improvements and accurate billing over a fresh tariff increase, although the longer-term financial sustainability of the electricity market remains a central part of the ongoing reform agenda.

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