FG rules out immediate electricity tariff hike, says subsidy removal will follow reforms
By Aboki Forex —
The Federal Government has said electricity tariffs will not go up in the immediate term, even as it plans to phase out power subsidies gradually. Minister of Power Joseph Tegbe gave the assurance on Friday at a media roundtable on the reset of Nigeria's electricity industry in Lagos.
Tegbe said the administration's focus is service improvement, universal metering and ending estimated billing, not increasing the financial burden on consumers.
No tariff increase now
Tegbe said the government has no plan to raise tariffs beyond current levels. He stressed that consumers should only pay for what they actually use.
"There is no policy by this administration to increase electricity tariffs beyond the current level. Our priority is not tariff increase in the immediate term. Our priority is service improvement, universal metering and ensuring Nigerians pay only for the electricity they actually consume," he said.
The minister added that the government will protect vulnerable electricity users while gradually restoring the financial health of the electricity market. He indicated that subsidy removal will happen alongside better service delivery, wider metering coverage and a more financially sustainable market, not through sudden tariff hikes.
5,000 youths to drive metering
A major part of the reform is the Presidential Metering Initiative, which aims to achieve universal metering nationwide. To support it, the government launched the Power Force Initiative, which will engage 5,000 Nigerian youths in meter installation.
Technical training will be provided through the National Power Training Institute of Nigeria. The programme is expected to create jobs while closing the country's metering gap.
Generation hits 5,000MW
Tegbe disclosed that Nigeria has consistently generated about 5,000 megawatts of electricity over the past two weeks. He described this as evidence that reforms are beginning to yield results, citing better coordination among operators, improved plant availability and stronger collaboration across the value chain.
He cautioned that higher generation alone will not solve Nigeria's power challenges. Transmission infrastructure, distribution networks and payment systems also need improvement.
Long-term plans include a comprehensive technical audit of the national transmission network, harmonisation of electricity regulations between federal and state governments, investment in key transmission corridors, and a Super Grid Programme to strengthen the national grid.
Tegbe said Nigerians should see noticeable improvements in electricity supply within the next few months. Broader reforms are expected to deliver a stronger grid, lower technical losses, improved market discipline and expanded electricity access over the next two to three years.
Mini-grid projects expand
Separately, the Rural Electrification Agency said it has commenced construction of 48 interconnected mini-grid projects in 19 states. The projects follow the Nigerian Electricity Regulatory Commission's new interconnected mini-grid regulations, which allow larger renewable energy systems than before.
REA managing director Abba Aliyu disclosed this on Thursday, July 23, 2026, in Abuja while hosting a benchmarking delegation from the Zanzibar Utilities Regulatory Authority.
For consumers and businesses, the immediate takeaway is stable tariffs for now. But the planned phase-out of subsidies, tied to better service and metering, means electricity costs could rise later as reforms take hold.