FG Rules Out Electricity Tariff Hike, Promises 24-Hour Power Supply

The Federal Government has ruled out an increase in electricity tariffs, saying it will prioritise improved power supply and work towards delivering electricity around the clock.

Minister of Power, Joseph Tegbe, gave the assurance on Thursday in Ibadan, Oyo State, amid concerns over rising electricity costs and persistent supply challenges across the country.

He spoke at the groundbreaking ceremony for five interconnected mini-grid projects designed to extend electricity access to underserved communities.

Tegbe urged Nigerians to disregard reports of an impending tariff increase, stressing that the government’s immediate focus was to improve service delivery.

“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,” he said.

The assurance comes as households and businesses continue to grapple with unreliable electricity and the high cost of alternative energy sources.

Many consumers rely on petrol and diesel generators to supplement inadequate grid supply. Manufacturers and other energy-intensive businesses also face higher operating costs, which often affect production expenses and the prices of goods.

Tegbe said the government intended to address these challenges by strengthening infrastructure, improving electricity supply and expanding access to underserved areas.

As part of the strategy, he identified the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors as key energy development zones.

The government plans to coordinate investments along these corridors to improve electricity availability for industries, businesses and residential communities. It also intends to strengthen the national grid and improve generation and transmission infrastructure.

Nigeria’s power sector continues to struggle with inadequate generation, transmission bottlenecks and distribution challenges. These problems limit the electricity that reaches consumers despite the country’s installed generation capacity.

The government hopes that better infrastructure and more reliable supply will ease pressure on households, lower business operating costs and encourage investment.

At the Ibadan ceremony, the minister highlighted interconnected mini-grids as another way to extend electricity access to communities that receive inadequate supply from the national grid.

The five projects have a combined generation capacity of 17.7 megawatts and a battery energy storage system with a capacity of 17.74 megawatt-hours.

They are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. The projects will serve communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu local government areas of Oyo State.

The initiative involves the Rural Electrification Agency, project developer Paras Energy and Natural Resources Development Limited, and other stakeholders in the electricity sector.

The projects aim to provide additional electricity, reduce reliance on private generators and support commercial activities in the beneficiary communities.

Tegbe said cooperation among federal and state governments, electricity distribution companies, developers and local communities would help ensure the projects achieve their objectives.

He also stressed the importance of reliable electricity infrastructure in attracting investment, supporting businesses and creating jobs.

However, delivering uninterrupted electricity nationwide will require sustained investment and improvements in generation, transmission and distribution. Effective implementation of power sector reforms will also remain critical to achieving the target.

For consumers, the government’s latest assurance offers a reprieve from fears of another tariff increase. However, whether the administration can translate its 24-hour electricity ambition into consistent supply remains a major test of its power sector agenda.