FG Denies Plan to End Electricity Subsidy, Increase Tariff

Nigeria's Minister of Power, Joseph Tegbe, has denied any immediate plans to end electricity subsidies or increase tariffs, stating the government's primary focus is on improving power supply and infrastructure.

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Let me address two issues. The first is that, there’s no policy by this administration to increase electricity tariff beyond the current rate.

Speaking at a national media roundtable in Lagos, Tegbe assured Nigerians that there is no policy to raise electricity tariffs beyond current rates. He emphasized that bringing the power subsidy regime to an end was a goal for next year, aimed at addressing the sector's significant liquidity crisis, which carries about N3.3 trillion in debt.

However, the minister later clarified his earlier remarks, ruling out any immediate tariff hikes or subsidy removals. This clarification likely followed an acknowledgment of the political implications of such a policy. The government continues to subsidize consumers in Bands B, C, D, and E, with an estimated N200 billion in monthly subsidies for non-Band A consumers, while Band A customers saw their tariffs increase significantly earlier this year.

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If anybody is giving you information or telling you we want to increase tariff, put everybody in band A, please, in the immediate term, nothing like that. And tell Nigerians, nothing like that. I’m making a categorical statement. There’s no plan to do that.

The administration is focused on making electricity a catalyst for national productivity, aiming to clear legacy debts owed to generation companies and gas suppliers through a Power Sector Bond initiative. Generation companies claim the debt has now exceeded N7 trillion.

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We have the mandate of Mr. President to clear the legacy debt and come up with sustainable structures to make sure this doesn’t pile up anymore. I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector.