The Federal Government has ruled out any immediate increase in electricity tariffs, saying its current priority is to improve power supply, expand electricity access and accelerate the deployment of meters across the country.
Minister of Power Joseph Olasunkanmi Tegbe disclosed this after commissioning a 3MW captive solar hybrid power project at Yakubu Gowon University, formerly the University of Abuja.
Tegbe said the government was focused on building a commercially viable electricity market while protecting vulnerable consumers from additional pressure.
He explained that ongoing reforms in the power sector were being directed towards improving service delivery, strengthening the electricity market and ensuring greater transparency in billing.
A major part of the government’s strategy is achieving universal metering. The minister said wider meter deployment would help ensure that consumers are billed according to the electricity they actually consume, addressing longstanding concerns over estimated billing.
The renewed focus on metering comes as millions of electricity customers remain without individual meters. Recent industry data showed that more than five million active customers were still unmetered, highlighting the scale of the challenge.
Tegbe also pointed to improved electricity generation, saying output had steadied around 5,000 megawatts in recent weeks. However, the government maintains that increased generation alone is not enough to resolve the country’s electricity problems.
Transmission capacity, distribution infrastructure, market liquidity and payment systems must also function effectively for consumers to receive more reliable electricity.
The solar hybrid project commissioned at Yakubu Gowon University is part of the government’s effort to expand alternative sources of electricity while reducing dependence on diesel-powered generators.
The facility comprises a 3.3MWp solar array capable of producing 3MW of AC power, supported by a 2MWh battery storage system and dedicated grid supply when solar generation is unavailable. It also includes 388 solar-powered streetlights.
The project is expected to provide more reliable electricity to the university community while reducing the institution’s reliance on diesel generators.
The government’s position on tariffs comes amid continuing discussions about the financial sustainability of Nigeria’s electricity market. The Federal Government has previously announced plans to phase out electricity subsidies from 2027 while working to address outstanding liabilities in the sector.
Tegbe has maintained that ending the subsidy regime should not be interpreted as an immediate increase in electricity tariffs.
The government is also working to address legacy debts and attract fresh investment into generation, transmission and distribution. It argues that a financially sustainable electricity market is necessary to support long-term improvements in supply.
For households and businesses, the immediate implication is that electricity tariffs will remain at their current levels for now, while the government concentrates on improving the quality and reliability of the service being delivered.
The ministry’s approach places greater emphasis on ensuring consumers receive measurable improvements in electricity supply and accurate billing before any future tariff decisions are considered.
With electricity costs and reliability affecting households, manufacturers, small businesses and other economic activities, the outcome of these reforms could have wider implications for Nigeria’s productivity and investment climate.
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