FG Rules Out Immediate Electricity Tariff Increase

By Adebola Muili

The Federal Government has ruled out any immediate increase in electricity tariffs, saying its priority is to improve service delivery, expand access to reliable power and accelerate universal metering across the country.

The Minister of Power, Joseph Olasunkanmi Tegbe, stated this on Wednesday while speaking with journalists after commissioning a 3MW captive solar hybrid power project at Yakubu Gowon University, formerly the University of Abuja.

Tegbe said the government’s immediate focus was on improving the quality of electricity supply and protecting consumers, particularly vulnerable Nigerians, rather than increasing tariffs.

“There are no immediate plans to increase electricity tariffs. Our goal is to build a commercially viable power sector while protecting vulnerable consumers,” the minister said.

His clarification comes amid concerns over a possible further adjustment in electricity tariffs following earlier discussions around reforms to the electricity subsidy framework.

Tegbe, however, said the government remained committed to addressing the structural and financial challenges affecting the power sector while ensuring that reforms translate into better service for consumers.

He identified universal metering as another major priority of the ministry, saying it would improve billing accuracy, enhance transparency and ensure that consumers pay based on their actual electricity consumption.

The minister said the government was also working towards creating a financially sustainable and investment-friendly electricity market capable of supporting infrastructure development and improving generation and distribution.

At the commissioning, Tegbe described the 3MW solar hybrid project as part of the Federal Government’s broader efforts to provide cleaner and more reliable electricity to public institutions.

The project, developed by the Rural Electrification Agency under Phase II of the Energising Education Programme, comprises a 3.3MWp solar array, 3MW AC output and a 2MWh battery storage system.

It is also supported by dedicated grid supply during periods when solar generation is unavailable, thereby reducing the university’s dependence on diesel-powered generators.

The project is expected to provide stable electricity to the university community of about 58,726 students, while contributing to reduced reliance on conventional fossil-fuel-powered generators.

In addition, 388 solar-powered streetlights are being installed across the campus to improve visibility and security and provide a safer environment for students and staff after dark.

The minister said the project demonstrated the administration’s commitment to improving electricity reliability while implementing reforms aimed at strengthening the long-term sustainability of the sector.

He said efforts to reform the electricity market would continue to take into account the needs of vulnerable consumers, even as the government seeks to address the financial pressures that have historically affected the sector.

For now, the Federal Government maintains that electricity tariff increases are not an immediate consideration, with attention focused on service improvement, universal metering and strengthening consumer confidence in the power sector.