The Federal Government has ruled out any immediate increase in electricity tariffs, saying it is instead focusing on tackling the financial and structural problems weighing down Nigeria’s power sector.
Minister of Power Joseph Tegbe disclosed the position in Abuja during a media briefing marking his first 100 days in office, where he outlined measures being taken to stabilise electricity supply and improve the financial health of the sector.
Tegbe said the government had raised an estimated N1.23 trillion as part of a broader programme to address the power sector’s accumulated debt, which he put at about N3.3 trillion.
The minister stressed that the funding intervention was intended to improve liquidity across the electricity value chain and help address longstanding obligations that have affected generation, gas supply and other parts of the industry.
He said the government was not considering a tariff increase as an immediate solution to the sector’s financial challenges, insisting that higher electricity prices were not currently on the administration’s agenda.
The government’s position comes amid continuing concerns among electricity consumers over the cost of power and the financial sustainability of the Nigerian Electricity Supply Industry.
According to Tegbe, the ministry’s assessment of the sector revealed interconnected problems involving gas supply, electricity generation, transmission, distribution and payment discipline.
He said damaged gas pipelines and unfavourable commercial conditions had constrained gas supplies to power plants, while several generating facilities continued to depend on ageing thermal plants affected by delayed maintenance and stalled projects.
The minister also disclosed that generating companies were receiving payment for only about 27 per cent of the electricity bills issued to them, a situation that has weakened their ability to maintain facilities and meet obligations to gas suppliers.
Beyond the debt intervention, Tegbe said electricity generation and transmission had remained above 5,000 megawatts in recent weeks, compared with a range of about 3,700MW to 4,700MW before June.
Nigeria’s power generation reportedly reached a peak of 5,330MW during August and September, although the minister acknowledged that higher generation figures had not necessarily translated into reliable electricity for every community.
The ministry has also reported the restoration of the 375MW Alaoji open-cycle power plant after about three years offline, while new transformers at Apapa, Ijora, Alausa and Lekki in Lagos have reportedly unlocked 672MW of transmission capacity.
Another 300MVA transformer commissioned at Katampe in Abuja has also been reported to have unlocked an additional 240MW of transmission capacity.
Tegbe said the administration was working around three broad priorities: stabilising the electricity value chain, restoring market discipline and strengthening governance across the sector.
The government has also intensified efforts to close the metering gap, with more than 350,000 electricity meters reportedly installed during the minister’s first 100 days in office.
The cumulative number of meters installed under the programme was put at more than one million as of August 2026, while the resolution of litigation surrounding the AMMON metering programme has reportedly opened the way for the procurement of about 1.4 million additional smart meters.
The administration is also seeking to reduce annual revenue losses estimated at about N120 billion while improving payment discipline and creating stronger financial incentives for private-sector operators.
Tegbe acknowledged that many of the problems confronting Nigeria’s electricity industry were decades old and could not be resolved immediately, but said the government was pursuing measures designed to produce more sustainable improvements.
The latest policy direction therefore places the immediate emphasis on debt resolution, infrastructure upgrades, metering and market reforms rather than passing additional costs to electricity consumers through another tariff increase.
For Nigerian households and businesses, the government’s announcement means there is currently no immediate tariff hike on the table, although the longer-term sustainability of electricity pricing will remain closely linked to how successfully the sector’s financial and operational challenges are addressed.