Nigeria's Power Minister Freezes Electricity Tariffs Amid Revenue Crisis

The Federal Government of Nigeria, represented by Minister of Power Joseph Tegbe, announced on Monday that there are no immediate plans to increase electricity tariffs. This decision is aimed at stabilizing the electricity value chain and improving supply.

However, industry experts and insiders from the Abuja Electricity Distribution Company (AEDC) warn that this freeze could deepen the existing revenue shortfall in the electricity market. Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, highlighted a significant financing gap that has led to government interventions through subsidies and debt financing.

In June 2026, DisCos received electricity valued at N315.73 billion but only collected N191.86 billion, resulting in a N123.87 billion gap. The Nigerian Electricity Regulatory Commission reported that in 2025, the 11 DisCos supplied electricity valued at N3.68 trillion but collected only N2.32 trillion, leading to a revenue gap of about N1.36 trillion.

Experts emphasize that improving collection efficiency and reducing losses are crucial for the financial health of the market without tariff increases.