FG Clarifies Stance On Electricity Subsidy, Tariff Hike Amid Power Sector Reform

The federal government has come out to deny any plans to stop subsidizing electricity or increase tariffs in the near future. This comes after the Minister of Power, Mr. Joseph Tegbe, mentioned that the current administration aims to end the power subsidy regime by next year. However, the minister later clarified that there are no immediate plans to raise electricity tariffs or remove subsidies, emphasizing that the government's priority is to improve power supply and expand metering. Tegbe made this statement at a national media roundtable on 'Resetting Nigeria's Power Sector' in Lagos. He assured Nigerians that there is no policy to increase electricity tariffs beyond the current rate, and the government is working to address liquidity challenges in the sector. The minister announced a Power Sector Bond initiative to settle legacy debts owed to generation companies and gas suppliers, which currently stands at about N3.3 trillion. The government is also focused on making electricity a catalyst for national productivity rather than a constraint to economic growth through a new agenda tagged 'Resetting the Sector'. This initiative aims to make electricity more available, the grid more reliable, and restore investor confidence. Tegbe credited President Bola Tinubu with demonstrating strong commitment to electricity sector reform, citing the full implementation of the Electricity Act, which allows states to develop their own electricity markets. The minister also announced a series of immediate interventions, including the inauguration of Power Force, a programme to engage 5,000 Nigerian youths for nationwide meter installation, and the Presidential Metering Initiative aimed at ending estimated billing.