MORGANABLE business/Power&Production
According to the minister, the government is committed to addressing long-standing inefficiencies in the power sector through a combination of reforms aimed at boosting supply, strengthening infrastructure and protecting consumers from arbitrary billing practices.
kaNo —
The Federal Government has ruled out any immediate increase in electricity tariffs, stating that its priority is to improve power supply, achieve universal metering, and ensure Nigerians pay only for the electricity they consume.
The Minister of Power, Joseph Tegbe, disclosed this on Friday during a media roundtable on the resetting of Nigeria’s power sector held in Lagos.
Tegbe said contrary to widespread public speculation, the current administration had no policy to raise electricity tariffs beyond existing levels, stressing that improving service delivery remained the government’s immediate focus.
“First, there is no policy by this administration to increase electricity tariffs beyond its current level. 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,” he said.
Govt Committed To Addressing Inefficiencies
According to the minister, the government is committed to addressing long-standing inefficiencies in the power sector through a combination of reforms aimed at boosting supply, strengthening infrastructure and protecting consumers from arbitrary billing practices.
He noted that the Federal Government would continue to explore additional mechanisms to cushion the impact of electricity costs on vulnerable consumers while ensuring 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,” Tegbe added.
The minister explained that the government’s stance on tariffs forms part of a broader strategy to reset the power sector, which has struggled for decades with inadequate generation, weak transmission infrastructure and poor distribution networks.
He said the ongoing reforms build on the implementation of the Electricity Act, which has decentralised aspects of the power sector and created opportunities for states to establish electricity markets tailored to their economic realities.
FG Advancing Power Sector Bond
In addition, the Federal Government is advancing a Power Sector Bond initiative aimed at settling longstanding financial obligations owed to generation companies, gas suppliers and other participants in the electricity value chain.
Analysts say the move is expected to restore investor confidence and improve liquidity within the sector.
Tegbe also highlighted the central role of the Presidential Metering Initiative in the reform agenda, describing it as a key intervention to eliminate estimated billing and promote transparency in electricity consumption.
He said the government was moving decisively towards universal metering, which would ensure that consumers are billed accurately based on actual usage rather than estimates that have often been a source of disputes between electricity distribution companies and customers.
The initiative, he said, would also serve as a platform for skills development through training provided by the National Power Training Institute of Nigeria, thereby creating employment opportunities while addressing critical gaps in the sector.
He attributed the improvement to enhanced operational coordination, better plant availability and stronger collaboration among stakeholders across the electricity value chain.
“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.
Despite the progress, the minister cautioned that increased generation alone would not resolve the country’s electricity challenges, stressing the need for coordinated improvements across generation, transmission, distribution and market payments.
As part of the transformation agenda, he announced plans for a comprehensive technical audit of the national transmission network, which has often been identified as a major bottleneck in delivering stable electricity supply.
He also outlined plans for the harmonisation of federal and state electricity regulations to ensure policy coherence and reduce regulatory uncertainties that have discouraged private sector investment.
Other planned interventions include strategic investments in key transmission corridors such as Lagos, Enugu-Port Harcourt and Abuja,Kaduna and Kano, as well as the implementation of a “Super Grid Programme” designed to strengthen the national transmission backbone and reduce system losses.
Tegbe expressed optimism that Nigerians would begin to see noticeable improvements in electricity availability in the coming months, while more substantial gains including a stronger grid, reduced technical losses and expanded access would materialise over the next two to three years.
No Justification For Electricity Tariff Hike Without Better Service – Falana
Meanwhile, human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has opposed any attempt by electricity distribution companies to increase tariffs without corresponding improvements in service delivery.
Speaking on a television programme, Falana criticised successive administrations for their handling of the power sector, arguing that despite the privatisation of electricity companies, Nigerians have seen little improvement in service.
He alleged that the privatisation process largely benefited a select group of individuals, while the government has continued to inject trillions of naira into the sector with limited impact on consumers.
“Now, the government has been giving again a lot of trillions of naira to the electricity companies. At the end of the day, you hear of Band A, Band B, and the rest of them,” he said.
Falana highlighted the persistent hardship faced by Nigerians, many of whom continue to endure erratic power supply, frequent outages and high electricity bills despite previous tariff adjustments.
According to him, any proposal to increase electricity tariffs must comply with the provisions of the Electricity Act, which require that such increases be justified by measurable improvements in service delivery.
“Under the law, you can only increase your tariff if there is improvement in services. So if the situation is getting worse, there can be no justification for an increase in tariffs,” he said.
Nigeria’s privatised power sector has long been plagued by structural challenges, including inadequate generation capacity, high technical and commercial losses, weak transmission infrastructure and heavy reliance on government interventions to remain operational.
The introduction of service bands, such as Band A for customers expected to receive up to 20 hours of electricity supply daily, has also drawn criticism, with many consumers complaining that the promised levels of service are rarely achieved.
As debates over tariffs and service quality continue, stakeholders say the Federal Government’s decision to hold off on tariff increases may provide temporary relief for consumers, but sustained reforms and investments will be critical to achieving long-term stability in the sector.
