FG rules out electricity tariff hike as power generation steadies at 5,000MW

The Federal Government has ruled out any immediate increase in electricity tariffs as power generation consistently crossed 5,000 megawatts (MW) over the past two weeks.

Minister of Power, Joseph Olasunhanmi Tegbe, disclosed this on Friday, July 31, 2026, during a media stakeholders’ session in Lagos.

Tegbe said the government was focused on improving electricity supply, closing the metering gap, strengthening transmission infrastructure and restoring investor confidence in the power sector.

What the Minister is saying

While noting that the sector has consistently crossed the 5000MW mark over the last week, Tegbe said the government’s approach to the power sector was focused on improving reliability and financial sustainability while ensuring consumers receive greater transparency in electricity billing.

• “To make electricity more available, make the grid more reliable, make the market financially sustainable and restore investor confidence. Ultimately, we want to ensure that electricity becomes a catalyst for national productivity rather than a constraint to economic growth,” Tegbe stated.

According to him, there is no move to increase tariff as reported in some media platforms, noting that through the Presidential Metering Initiative, Nigeria is moving decisively towards universal metering because consumers deserve transparency, fairness and confidence that they only pay for the electricity they actually consume.

• “This administration has also prioritised investment in transmission infrastructure, expanded rural electrification, strengthened institutional coordination across the electricity value chain, and continued to pursue reforms that encourage private capital while preserving the public interest,” the Minister noted.

The ministry inaugurated the Power Force initiative, which brings together 5,000 Nigerian youths to support meter installation nationwide and help close the metering gap.

The initiative is also expected to build a pool of skilled young Nigerians in the electricity sector through the National Power Training Institute of Nigeria (NAPTIN).

More Insights

The Federal Government’s latest position comes amid efforts to address the financial and operational challenges that have constrained Nigeria’s electricity sector.

• In April, President Bola Tinubu approved a N3.3 trillion payment plan to settle longstanding debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.
• In October 2025, the Federal Government concluded frameworks for a N4 trillion government-backed bond to settle arrears owed to GenCos and gas suppliers.
• The proposed bond issuance raised concerns over a debt-for-debt strategy among stakeholders in the sector.
• GenCos have also rejected claims that N2.8 trillion represents a final settlement, describing such reports as misleading.

In January, it issued an inaugural N501 billion bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP).

On July 20, the government announced a second tranche of about N729 billion to settle verified legacy debts owed to generating companies.

What you should know

The Power Ministry has commenced several interventions aimed at improving electricity supply and expanding access to metering across the country.

The ministry said there has been significant progress in resolving longstanding challenges surrounding meter procurement.

Electricity generation has consistently exceeded 5,000MW over the past two weeks, according to the minister.

Earlier in February, President Tinubu directed ministries, departments and agencies to rely on existing electricity sector laws to define how power subsidy costs would be shared among the federal, state and local governments in the 2026 budget.