FG Rules Out Electricity Tariff Hike as Power Generation Hits 5,330MW
The Federal Government says it has no plan to increase electricity tariffs for now, as it focuses on improving power supply, stabilising the national grid and addressing the financial problems weighing down the sector.
Minister of Power, Joseph Tegbe, made the announcement in Abuja during a media parley marking his first 100 days in office, covering June 8 to September 16.
Tegbe said the government’s immediate priority is to fix problems across the electricity value chain rather than place additional financial pressure on consumers.
“Let me categorically state, and this is not a political statement, we have no plan to increase electricity tariffs,” Tegbe said.
Power Sector Faces Problems Across the Value Chain
The minister said the challenges facing Nigeria’s electricity sector go beyond power generation.
According to Tegbe, gas supply to power stations has been constrained by damaged pipelines and commercial conditions that have discouraged investment. He also said many thermal power plants are dealing with ageing equipment, delayed maintenance and stalled projects.
Generation companies, he added, are receiving only 27 per cent of their bills, limiting their ability to maintain plants and pay gas suppliers.
The transmission network is also under pressure from vandalised towers and lines, overstretched equipment and repeated system failures.
At the distribution end, Tegbe said electricity companies are recording aggregate technical, commercial and collection losses of between 30 and 40 per cent.
The financial pressures extend to government agencies, with arrears owed by ministries, departments and agencies exceeding ₦100 billion, according to the minister.
He said inflation, foreign exchange pressures, accumulated debts and regulatory uncertainty have further complicated efforts to improve the market.
photo credit: TCN
‘Unpaid Bills Weaken Gas Supply’
Tegbe described the problems as interconnected.
He explained that unpaid electricity bills affect the ability of operators to maintain infrastructure and pay for gas, while unreliable electricity reduces collections and weak collections deepen sector debt.
His position is that simply building more power stations will not resolve the underlying cycle.
The government, he said, therefore spent its first 100 days focusing on diagnosis and stabilisation, alongside infrastructure improvements.
Alaoji Plant Restored After Three Years
One of the major developments highlighted by the minister was the restoration of the 375MW Alaoji open-cycle power plant to the national grid after being offline for three years.
Tegbe also said transformers commissioned at Apapa, Ijora, Alausa and Lekki in Lagos unlocked 672MW of transmission capacity.
Another 300MVA transformer at Katampe, Abuja, he said, added a further 240MW.
The minister said operational records showed that power generation and transmission rose above 5,000MW in the weeks leading up to the media parley, compared with between 3,700MW and 4,700MW before June.
Generation reportedly peaked at 5,330MW in August and September.
However, Tegbe acknowledged that higher national generation figures do not automatically translate into reliable electricity for every community.
He said some communities may continue to experience poor supply even while national figures improve.
Government Raises ₦1.23tn Towards Power Debt
The government is also tackling the sector’s financial burden.
Tegbe said about ₦1.23 trillion had been raised to address part of the estimated ₦3.3 trillion power-sector debt backlog.
On metering, the minister disclosed that approximately 350,000 electricity meters were installed during his first 100 days in office.
That brought cumulative meter installations to 1,004,260 as of August 2026, according to the minister.
He also said the resolution of litigation involving the AMMON metering programme had cleared the way for the procurement of about 1.4 million smart meters.
Minister of Power, Joseph Tegbe
Government Sets New Transmission Priorities
Looking ahead, Tegbe said the next phase of the reforms would focus on stabilising the Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano transmission corridors.
He said work would also begin on a Transmission Super Grid, while technical audits have started along the Lagos and Abuja corridors.
The government plans to assess the impact of the reforms over the next six months using three key measures: power supply reliability, billing accuracy, and how quickly faults and complaints are resolved.
For electricity consumers, the immediate message from the Federal Government is that there will be no tariff increase for now.
The bigger test, however, will be whether the infrastructure, financial and commercial reforms outlined by the Power Ministry translate into more reliable electricity for households and businesses across Nigeria.
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