FG denies electricity tariff hike for 2026, says no increase planned for any consumer band

The federal government has pushed back against reports of an impending electricity tariff hike, saying no increase is planned for any service band in 2026. Presidential adviser Sadiq Wanka said his comments at a Lagos policy event were taken out of context by some media outlets.

Nigeria's federal government has dismissed widespread media reports claiming it plans to raise electricity tariffs. In a clarification issued on Saturday, the Special Adviser to the President on Power Infrastructure in the Office of the Vice President, Sadiq Wanka, stated that there is no proposal to increase rates for consumers under any service band.

Government clarifies position

Wanka said the comments in question were made on July 22 at the Asharami Square 3.0 event in Lagos, where he was presenting investment opportunities in Nigeria's power sector and discussing ongoing reforms designed to attract private capital across the electricity value chain. According to him, the remarks were rooted in the National Integrated Electricity Policy, which was finalised in December 2024 and received Federal Executive Council approval in May 2025. That policy supports a gradual move toward cost-reflective tariffs, a direction the government has already begun implementing for Band A consumers.

Wanka was direct in his statement: 'There is no planned tariff hike for any grid consumer across any service band. Government remains committed to protecting vulnerable households through continued tariff support.' He said the conversation around cost-reflective pricing was about long-term investment and policy reform, not an announcement of any immediate changes to what consumers pay.

Power Consumer Assistance Fund

Rather than cutting electricity subsidies for lower-band consumers, the government said it is working to make subsidy delivery more efficient. Wanka pointed to the Power Consumer Assistance Fund (PCAF), created under the Electricity Act 2023, as the mechanism for achieving this. The fund is designed to channel targeted support directly to vulnerable electricity users through their accounts or identity-linked platforms, an approach the government says will improve transparency and boost investor confidence in the sector, Punch reports.

Wanka also said the Tinubu administration recognises the role journalists play in communicating government policy and called on the media to provide accurate, contextual coverage of electricity sector reforms going forward.

NERC orders refunds of N20.33bn

In a related development, the Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies to refund N20.33bn owed to customers who paid for meters under the Meter Asset Provider (MAP) scheme. According to Order No: NERC/2026/025, the regulator instructed that the outstanding amount must be recovered and fully repaid to affected customers within 12 months, starting from March 1, 2026, ThisDay reports. The directive was signed on February 27, 2026, by NERC chairman Musiliu Oseni and commissioner for legal, licensing and compliance Dafe Akpeneye. Under the MAP framework, electricity consumers who purchase meters directly are entitled to refunds through energy credits from their respective distribution companies.

For Nigerian households and businesses, the government's tariff clarification offers some short-term relief from fears of higher electricity bills. However, the continued push for cost-reflective pricing signals that subsidy reforms are still on the table, and the long-term direction depends on how effectively the PCAF protects vulnerable consumers.