The Federal Government has dismissed reports that it has removed electricity subsidies or is planning to increase electricity tariffs, assuring Nigerians that support for vulnerable consumers will remain in place, while comprehensive reforms are implemented to improve power supply across the country.
Speaking during an interactive session with newsmen in Lagos yesterday, the Minister of Power, Joseph Tegbe, clarified that the government had not abolished electricity subsidies, contrary to widespread speculation. “I did not say the subsidy is gone. We are addressing the issue, and by next year, we will begin implementing measures to resolve it”, Tegbe stated.
His remarks came amid concerns triggered by comments made earlier at an industry event by the Special Adviser to the President on Power Infrastructure in the Office of the Vice-President, Sadiq Wanka. In a statement issued on Friday, Wanka said his remarks at the Asharami Square 3.0 conference in Lagos on July 22 had been misrepresented, stressing that there is no planned electricity tariff increase for any consumer category. “There is no planned tariff hike for any grid consumer across any service band,” the statement said, adding that the government remains committed to protecting vulnerable households through continued tariff support.
Wanka explained that he had merely reiterated the Federal Government’s existing electricity policy, as outlined in the National Integrated Electricity Policy approved by the Federal Executive Council in May 2025. The policy provides for a gradual transition to cost-reflective tariffs, currently applicable only to Band-A customers who receive at least 20 hours of electricity daily, while subsidies for other consumer categories will remain in place.
According to the Government, subsidy support will increasingly be channelled through the Power Consumer Assistance Fund, established under the Electricity Act 2023, to ensure assistance reaches vulnerable consumers more efficiently and transparently.
Tegbe, meanwhile, said improving electricity generation alone would not solve Nigeria’s power challenges, stressing that reforms must strengthen the entire electricity value chain—from generation and transmission to distribution and revenue collection. He said the Federal Government’s “Resetting the Sector” initiative is aimed at improving service delivery, restoring investor confidence and making the electricity market financially sustainable.
As part of the reforms, the Government plans to conduct a nationwide technical audit of the transmission network to identify ageing infrastructure, overloaded substations, weak transmission corridors and other operational bottlenecks. It also intends to work closely with the Nigerian Electricity Regulatory Commission (NERC) and state electricity regulators to harmonise regulatory frameworks, eliminate overlaps and create a more predictable investment environment.
The Minister reaffirmed the government’s commitment to improving electricity supply, accelerating prepaid meter deployment, strengthening the national grid and maintaining current electricity tariffs. “Our goal is simple: make electricity more available, make the grid more reliable, make the market financially sustainable and ensure power becomes a driver of economic growth rather than a constraint”, he said.
According to Tegbe, procurement issues that had slowed meter deployment have largely been resolved, paving the way for faster installation of prepaid meters nationwide. He also disclosed that Nigeria had consistently generated about 5,000 megawatts of electricity over the past two weeks due to improved coordination among market operators and increased availability of power plants.
He further revealed that the government is advancing the Power Sector Bond Initiative to settle legacy debts owed to generation companies, gas suppliers and other market participants. Disputed debt claims, he said, have been reconciled from about ₦6 trillion to ₦3.3 trillion as of March 2025, with ₦501.3 billion already paid and another ₦700 billion being processed.
Strategic investments under the Grid Stabilisation Programme, Tegbe added, will focus on major transmission corridors, including Lagos, Enugu–Port Harcourt and Abuja–Kaduna–Kano, while the proposed Super Grid Programme is expected to strengthen the national transmission backbone, improve grid resilience and support industrialisation.
The Minister also highlighted the growing adoption of renewable energy, noting that many factories, offices and commercial facilities are now generating more electricity than they consume through solar installations. He assured Nigerians that solar energy would remain central to expanding electricity access in rural and underserved communities. Expressing optimism about the sector’s outlook, Tegbe said Nigerians should begin to experience noticeable improvements in electricity supply within the next few months, while a more stable and resilient national grid is expected to emerge over the next two to three years.
Both Tegbe and Wanka called on electricity market operators, investors, development partners, state governments, organised labour, consumer groups to support the Federal Government’s reform agenda aimed at delivering stable, affordable and sustainable electricity for all Nigerians.
