FG rules out electricity tariff hike

The Federal Government has definitively ruled out any immediate increase in electricity tariffs, emphasizing that its primary focus lies in enhancing power supply, achieving universal metering, and ensuring consumers are billed accurately for their electricity usage. Minister of Power, Joseph Tegbe, clarified this position during a media roundtable in Lagos.

Contrary to public speculation, Tegbe asserted that the current administration does not have a policy to raise electricity tariffs beyond existing levels. Instead, efforts will be concentrated on improving service delivery and safeguarding electricity consumers. "Our priority is service improvement, universal metering and ensuring Nigerians pay only for the electricity they actually consume," the minister stated.

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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 government plans to explore additional mechanisms to protect vulnerable consumers while simultaneously bolstering the financial sustainability of the Nigerian Electricity Supply Industry. These reforms are part of a broader strategy to reset the power sector. This includes improving electricity supply, fortifying the national grid, restoring investor confidence, and establishing a financially sound electricity market.

Key initiatives include advancing the implementation of the Electricity Act, which empowers states to create their own electricity markets, and a Power Sector Bond to address legacy debts owed to generation companies and other market participants. The Presidential Metering Initiative remains central, aiming for universal metering to eliminate estimated billing and promote transparency. Additionally, the new Power Force initiative will employ 5,000 Nigerian youths in meter installation, fostering technical skills development.

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Indeed, the Federal Government will continue to examine additional mechanisms for protecting vulnerable consumers whilst simultaneously improving the financial sustainability of the market.