THE Federal Government has ruled out any immediate increase in electricity tariffs, saying its priority is to improve power supply, achieve universal metering and ensure consumers pay only for the electricity they consume.
Minister of Power, Joseph Tegbe, who disclosed this on Friday, July 31, during a media roundtable on the resetting of Nigeria’s power sector in Lagos, said contrary to public speculation, the current administration had no policy to raise electricity tariffs beyond the existing levels, noting that efforts would instead be directed at improving service delivery and protecting electricity consumers.
Tegbe stated: “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.”
The minister stated that the Federal Government would continue to examine additional mechanisms to protect vulnerable consumers, while improving the financial sustainability of the Nigerian Electricity Supply Industry.
Tegbe said the position was part of a broader strategy to reset the power sector through reforms designed to improve electricity supply, strengthen the national grid, restore investor confidence and make the electricity market financially sustainable.
He noted that implementation of the Electricity Act has created opportunities for states to establish electricity markets suited to their economic realities, while the Federal Government advances a Power Sector Bond initiative to settle legacy obligations owed to generation companies, gas suppliers and other market participants.
He said the Presidential Metering Initiative remained central to the reforms, as government was moving decisively towards universal metering to eliminate estimated billing and ensure transparency in electricity billing.
He also announced the inauguration of the Power Force initiative, which would engage 5,000 Nigerian youths in meter installation nationwide, while developing technical skills through the National Power Training Institute of Nigeria.
Tegbe stated that Nigeria had consistently generated 5,000 megawatts of electricity over the past two weeks due to enhanced operational coordination, better plant availability and stronger collaboration across the electricity value chain.
According to him: “Although much work remains, enhanced operational coordination, improved plant availability and better engagement across the value chain are beginning to produce measurable improvements.”
He, however, maintained that increased electricity generation alone would not solve Nigeria’s power challenges, as the sector requires coordinated improvements in generation, transmission, distribution and market payments.
Tegbe expressed confidence that Nigerians would begin to see visible improvements in electricity availability within the next few months, while a stronger grid, lower technical losses, improved market discipline, expanded electricity access and greater operational capacity would be achieved over the next two to three years.
