The Federal Government has ruled out an immediate electricity tariff hike, saying its attention is currently focused on improving electricity supply, strengthening the power market and addressing the financial and infrastructure problems affecting the sector.
Minister of Power, Joseph Tegbe, made the announcement on Monday, September 21, 2026, during a media briefing in Abuja to mark his first 100 days in office, where he outlined measures taken by the ministry to stabilise the electricity value chain and improve service delivery across the country.
Tegbe said the government had no plan to increase electricity tariffs, stressing that its immediate priority was to improve the quality and reliability of electricity available to Nigerians rather than place additional financial pressure on consumers.
The minister explained that the challenges in the sector extend beyond electricity generation, with problems affecting gas supply, generation infrastructure, transmission networks and distribution companies, meaning that simply adding more generating capacity would not resolve the wider difficulties facing the industry.
Electricity Tariff Hike Ruled Out as FG Tackles Power Sector Debt
According to Tegbe, the Federal Government has raised about ₦1.23 trillion to address part of the ₦3.3 trillion power-sector debt backlog, with the intervention expected to improve liquidity and strengthen the ability of electricity market operators to meet their obligations, maintain infrastructure and support more stable operations.
The minister said the government had also focused on reducing some of the financial leakages affecting the sector, including losses associated with energy theft, while efforts to improve billing, collection and remittance are expected to help preserve funds needed to sustain electricity supply.
Tegbe also disclosed that about 350,000 electricity meters had been installed during his first 100 days in office, bringing the total number of installed meters to 1,004,260 as of August 2026.
He added that the resolution of litigation involving the AMMON metering programme had cleared the way for the procurement of about 1.4 million smart meters, which the government expects to support its efforts to improve billing accuracy and reduce reliance on estimated electricity consumption.
The minister said metering remains an important part of the government’s plan because accurate measurement of electricity consumption can help consumers understand their bills while also strengthening revenue collection across the electricity market.
FG Targets More Reliable Electricity Supply
Tegbe said electricity generation and transmission had risen above 5,000 megawatts in the weeks before his media briefing, compared with between 3,700MW and 4,700MW before June, while generation reached a peak of 5,330MW in August and September.
He, however, acknowledged that improvements in national generation figures do not necessarily mean that every community is receiving reliable electricity, noting that individual feeders can still experience poor supply even when overall national figures improve.
As part of the next stage of the reforms, the government plans to concentrate on stabilising major transmission corridors, including Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano, while also beginning work on a Transmission Super Grid. Technical audits have also commenced along the Lagos and Abuja corridors to identify weaknesses and guide further interventions.
The minister further disclosed that the 375MW Alaoji open-cycle power plant had been restored to the national grid after remaining offline for three years. New transformers commissioned in parts of Lagos also unlocked 672MW of transmission capacity, while a new 300MVA transformer at Katampe in Abuja unlocked another 240MW.
The government is expected to measure the progress of the reforms over the next six months by examining changes in electricity supply reliability, billing accuracy and how quickly faults and consumer complaints are resolved.
For now, the Federal Government says an electricity tariff hike is not on its immediate agenda as it concentrates on strengthening the electricity market, improving infrastructure and translating recent interventions into more reliable power for homes, businesses and institutions across Nigeria.