FG Denies Plans to End Electricity Subsidy or Raise Tariffs

The federal government of Nigeria, through Minister of Power Joseph Tegbe, denied any immediate plans to end electricity subsidies or increase tariffs. This clarification followed Tegbe's earlier statement regarding the intention to phase out the power subsidy regime by next year to tackle the sector's liquidity crisis.

He asserted that the government's immediate priorities include enhancing power supply, expanding metering, and stabilizing the national grid. Tegbe categorically stated, “There’s no policy by this administration to increase electricity tariff beyond the current rate.” He mentioned a Power Sector Bond initiative aimed at settling legacy debts, which currently amount to about N3.3 trillion.

While the Nigerian Electricity Regulatory Commission (NERC) calculates cost-reflective tariffs, government policies have historically prevented full rates from being charged to most consumers. The government maintains an estimated N200 billion monthly subsidy for non-Band A consumers, with total debts to operators exceeding N7 trillion as of June this year.