The Federal Government has firmly ruled out any immediate increase in electricity tariffs, announcing instead that it has raised an estimated N1.23 trillion bond to tackle the crippling backlog of debts within the power sector.
Disclosing this during a media parley to mark his first 100 days in office, the Minister of Power, Joseph Tegbe, assured Nigerians that the government’s primary focus is on stabilizing the electricity market and improving supply, rather than squeezing consumers.
“We have no plan to increase electricity tariffs. There is no immediate plan by this government to increase tariffs. It is not on our table; it is not on our agenda,” Tegbe stated categorically.
The N1.23 trillion capital raise is a critical component of a broader strategy designed to address an estimated N3.3 trillion debt burden that has long choked the electricity value chain. According to the minister, a comprehensive diagnosis conducted by the ministry revealed systemic, interconnected failures across the board. These include gas supply constrained by damaged pipelines and unfavorable commercial terms, generation hampered by ageing thermal plants and deferred maintenance, with only 27 percent of generating companies’ bills actually being paid, and distribution networks suffering from 30 to 40 percent aggregate technical, commercial, and collection losses.
Despite these deep-seated structural hurdles, the government has recorded notable improvements in power generation. Tegbe reported that generation recently peaked at 5,330MW, a significant jump from the 3,700MW to 4,700MW range recorded before June. Key infrastructure interventions driving this include the restoration of the 375MW Alaoji open-cycle power plant after three years offline, and the commissioning of new transformers in Lagos and Abuja that have unlocked over 900MW of transmission capacity.
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To tackle the massive revenue leakages that exacerbate the sector’s financial woes, the administration has heavily intensified its metering and anti-theft efforts. Tegbe disclosed that approximately 350,000 meters were installed within his first 100 days, bringing cumulative installations to over one million. Furthermore, the resolution of the AMMON litigation has unlocked the procurement of 1.4 million smart meters, while aggressive crackdowns on energy theft have successfully blocked an estimated N120 billion in yearly revenue losses along the Ikorodu-Sagamu corridor alone.
While acknowledging that a national generation peak does not automatically translate to reliable power for every single household, the minister emphasized the administration’s commitment to bridging the gap between the grid and the end consumer.
“Our next task is to sustain these gains and translate them into more dependable supply at the customer level. We are aware that a national peak alone cannot describe the experience of every community,” Tegbe noted.
By choosing to inject capital and address the root financial and structural causes of the power crisis rather than simply raising tariffs, the Federal Government is signaling a shift in strategy. The goal is to build a more resilient, liquid, and equitable electricity market, ensuring that the lights stay on without further inflating the cost of living for everyday Nigerians.
Promise Idoko is Junior Reporter working with moderncrux He covers global politics and international affairs. Based in Nigeria,
