The Federal Government has ruled out plans to increase electricity tariffs, assuring Nigerians that its immediate priority is to improve power supply and achieve round-the-clock electricity across the country.
Minister of Power, Joseph Tegbe, gave the assurance on Thursday in Ibadan, Oyo State, while speaking at the groundbreaking ceremony for five interconnected mini-grid projects designed to expand electricity access in underserved communities.
Tegbe urged Nigerians to disregard reports of an impending tariff increase, insisting that the government was focusing on strengthening electricity supply rather than imposing additional costs on consumers.
“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,” the minister said.
The clarification comes amid persistent concerns over the cost of electricity, the implementation of power sector reforms and the impact of electricity bills on households and businesses already grappling with rising operating expenses.
According to the minister, the government’s strategy is to improve the performance of the electricity value chain, strengthen infrastructure and expand access to reliable power, with the ultimate objective of supporting economic activities and reducing dependence on alternative energy sources.
Tegbe disclosed that the government was pursuing an energy development strategy built around designated energy zones, including the Lagos-Ogun corridor, the Abuja-Kaduna-Kano corridor and the Benin-Enugu-Port Harcourt corridor.
The proposed corridors are expected to support coordinated investments in electricity infrastructure and improve the availability of power to businesses, industries and residential communities.
He added that the government was also working to strengthen the national grid and improve generation and transmission infrastructure across the country’s major electricity corridors.
The minister’s remarks suggest that the administration intends to prioritise improvements in electricity supply as it addresses longstanding challenges affecting the sector.
Nigeria’s electricity industry continues to face constraints involving generation capacity, transmission limitations, distribution inefficiencies and inadequate supply to consumers.
These challenges have forced many households and businesses to depend on petrol and diesel generators, increasing the cost of living and production.
For manufacturers and other energy-intensive businesses, unreliable electricity supply has remained a major operating cost, affecting competitiveness, investment decisions and the prices of goods and services.
The government believes that expanding electricity access and improving supply reliability would help reduce these pressures, although the delivery of uninterrupted power nationwide will depend on sustained investment and improvements across the entire electricity value chain.
At the Ibadan event, Tegbe also highlighted the role of interconnected mini-grid projects in expanding electricity access to communities that may not receive adequate supply from the national grid.
The five projects, with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour battery energy storage system, are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega.
The projects are expected to serve communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.
Their development is intended to provide additional electricity supply, reduce dependence on private generators and support economic activities in the beneficiary communities.
The initiative involves the Rural Electrification Agency, project developer Paras Energy and Natural Resources Development Limited, and other stakeholders supporting the expansion of electricity infrastructure.
Tegbe described the mini-grid projects as part of the Federal Government’s broader efforts to improve electricity access and create a more reliable power system.
He said cooperation among federal and state governments, electricity distribution companies, project developers and local communities would be important to ensuring the projects deliver their intended benefits.
The minister also acknowledged the importance of strengthening the country’s electricity infrastructure to support businesses, attract investment and create employment opportunities.
However, achieving the government’s 24-hour electricity ambition will require sustained improvements in generation, transmission and distribution, as well as effective implementation of sector reforms.
Nigeria’s power sector has struggled to translate installed generation capacity into reliable electricity delivered to consumers, with infrastructure constraints and operational challenges limiting the amount of power available to households and businesses.
The government’s latest assurance against a tariff increase therefore places renewed emphasis on improving service delivery while addressing the structural problems affecting the electricity market.
For consumers, the immediate implication is that the government has ruled out a fresh tariff increase for now. Whether improved electricity supply can be delivered consistently across the country remains a key test of the administration’s power sector agenda.
