No plan to increase electricity tariff, says FG

The Federal Government has stated that it has no intention to raise electricity tariffs. The Minister of Power, Joseph Tegbe, made this announcement during a media briefing in Abuja on Monday, marking his first 100 days in office. This statement was made in response to concerns over the financial sustainability of the electricity market and the industry's future.

Tegbe emphasized that the government's focus is on enhancing electricity supply and reinforcing the power sector's financial and physical frameworks, rather than imposing extra burdens on consumers. He highlighted that the sector faces challenges at every level, including supply constraints, ageing infrastructure, and high commercial losses.

The minister outlined four promises he made upon assuming office: promoting a disciplined approach to solve sector issues, striving for grid stability through strategic reforms, delivering incremental improvements, and addressing the sector's underlying problems. He revealed that the transmission and distribution systems are under pressure due to vandalised infrastructure, ageing equipment, and frequent system failures.

Additionally, power companies are receiving only 27% of their due payments, which has hampered their capacity to maintain plants and pay gas suppliers.

Tegbe stressed that the government has been concentrating on diagnosing and stabilising the sector rather than building new projects. Notable initiatives include the restoration of the 375MW Alaoji open-cycle power plant, commissioning of transformers in Lagos, and installation of 350,000 meters, raising the cumulative installations to 1,004,260. The minister also announced that the government intends to stabilise key transmission corridors and commence work on a Transmission Super Grid in the next phase of reforms.