FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

The federal government has ruled out any plan to raise electricity tariffs, saying its priority is to improve supply and deliver round-the-clock power across Nigeria. Minister of Power Joseph Tegbe gave the assurance on Thursday at the groundbreaking ceremony for a 17.7-megawatt (MW) interconnected mini-grid project in Ibadan, Oyo State.

The project is being organised by the Rural Electrification Agency (REA).

No tariff increase, says minister

Tegbe said the government wants a power sector that works without placing a heavier burden on consumers.

"I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power," he said.

The minister had given a similar assurance in July, when he stated that the federal government had no immediate plans to increase electricity tariffs.

According to him, the 17.7MW mini-grid project reflects the government's commitment to raising electricity generation, improving supply reliability and creating economic opportunities for Nigerians.

He said the administration is not only interested in expanding power infrastructure but also wants additional capacity to serve households, businesses, industries and other productive activities.

"Our objective is clear: to increase the quantum of electricity available to Nigerians, improve the reliability of supply and ensure that electricity becomes an enabler of productivity, investment and economic growth," Tegbe said.

He added that the Ibadan project would help translate the government's electricity objectives into infrastructure that directly supports communities and businesses, and that it complements other federal interventions aimed at strengthening generation, transmission and distribution nationwide.

REA targets economic impact, private investment

Abba Aliyu, managing director of the REA, said the agency is prioritising electricity projects that can deliver significant economic benefits while encouraging private-sector investment and sustainable operating models.

Aliyu explained that the Ibadan project is not just about adding 17.7MW to Nigeria's electricity capacity but also about the economic activity that the extra power can support.

"This groundbreaking is about more than 17.7 megawatts of new generation capacity. It is about what that capacity will enable," he said.

He said a more reliable electricity supply would allow businesses to operate for longer hours, cut their dependence on expensive self-generation and improve productivity. Those benefits, he said, could attract fresh investment, create jobs and expand economic opportunities for residents and businesses.

The REA managing director said the Ibadan project forms part of a wider pipeline of investments being facilitated by the agency across Nigeria. He noted that distributed energy solutions are increasingly important not only for expanding access but also for improving supply reliability and supporting economic development.

Aliyu said the agency will continue to promote projects that use private-sector investment and sustainable operating arrangements to deliver electricity where it can generate the greatest economic impact.

What it means for businesses

For Nigerian businesses, the pledge on tariffs removes, at least for now, the threat of another jump in operating costs. The bigger test is delivery. Firms running on diesel and petrol generators spend heavily on self-generation, and any real improvement in supply hours would cut that burden and lift margins.