The Federal Government has ruled out plans to increase electricity tariffs for now, with Minister of Power Joseph Tegbe declaring that the administration’s immediate priority is to improve power supply, address mounting debts and strengthen Nigeria’s electricity sector. Tegbe made the declaration on Monday in Abuja during a media parley marking his first 100 days in office, covering June 8 to September 16, 2026.

“Let me categorically state, and this is not a political statement, we have no plan to increase electricity tariffs,” the minister said. He explained that the government was focused on resolving the financial and operational challenges confronting the sector rather than imposing additional costs on electricity consumers. According to him, Nigeria’s power crisis cannot be resolved by increasing generation alone, as problems across the entire electricity value chain continue to undermine reliable supply.

FG Speaks On Increasing Electricity Tariff

Tegbe disclosed that electricity generation companies (GenCos) were receiving only 27 per cent of their bills, while outstanding debts owed by ministries, departments and agencies (MDAs) had exceeded ₦100 billion. He said the sector was also grappling with gas supply constraints, ageing power plants, transmission infrastructure challenges and distribution losses estimated at between 30 and 40 per cent. The minister warned that unpaid bills were weakening gas supply and maintenance, while unreliable electricity was reducing collections and deepening the sector’s debt burden.

Highlighting achievements recorded during his first 100 days, Tegbe said the government had restored the 375-megawatt Alaoji open-cycle power plant to the national grid after it remained offline for three years. He also disclosed that the administration had raised approximately ₦1.23 trillion to address part of the ₦3.3 trillion power-sector debt backlog. On electricity metering, the minister said about 350,000 meters were installed during the period, while procurement plans for approximately 1.4 million smart meters had been cleared following the resolution of litigation involving the AMMON metering programme.

The minister further stated that electricity generation peaked at 5,330MW in August and September, while transformers commissioned in Lagos and Abuja had helped unlock additional transmission capacity. He, however, acknowledged that improved national generation figures did not necessarily translate into reliable electricity for every community. Tegbe said the government would continue to focus on transmission upgrades, including stabilising key power corridors and developing a proposed Transmission Super Grid.

Tegbe said the next phase of the government’s power sector reforms would be measured by improvements in supply reliability, billing accuracy and the speed of resolving faults and consumer complaints. His declaration that there are no immediate plans to increase electricity tariffs comes as households and businesses continue to face concerns over electricity costs and inconsistent supply. The government says its priority is to strengthen the sector’s financial and physical infrastructure while delivering measurable improvements to consumers.