Abuja, Nigeria – September 22, 2026
DDNewsOnline
The Federal Government has ruled out an immediate increase in electricity tariffs despite ongoing liquidity challenges in the power sector.
The government said it has raised substantial funds towards settling the backlog of debts owed to power generation companies and gas suppliers. The move is aimed at stabilising power supply and restoring confidence in the sector without placing an additional burden on consumers.
The Minister of Power, Joseph Tegbe, made this known on Monday in Abuja while giving an account of his first 100 days in office.
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Tegbe said the government had raised about ₦1.23 trillion towards the ₦3.3 trillion debt backlog in the power sector. He explained that settling the debts would help improve the flow of money in the sector and support power generation companies in maintaining their plants and meeting their obligations to gas suppliers.
“We have no plan to increase electricity tariffs,” the Minister said.
He explained that the problems in the power sector affect different areas, including gas supply, generation, transmission and distribution. He said generation companies were receiving payment for only about 27 per cent of their bills, affecting their ability to maintain their plants and pay gas suppliers.
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The Minister also said the transmission network was facing problems such as vandalised towers and lines, overstretched equipment and repeated system failures. He added that distribution companies were recording losses of between 30 and 40 per cent.
Tegbe said some improvements had already been recorded. He disclosed that the 375MW Alaoji open-cycle power plant had been restored to the national grid after being out of operation for three years.
He also said transformers at Apapa, Ijora, Alausa and Lekki in Lagos had unlocked 672MW of transmission capacity, while a new 300MVA transformer at Katampe in Abuja added another 240MW.
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The Minister said electricity generation and transmission had remained above 5,000MW in recent weeks, compared with between 3,700MW and 4,700MW before June 2026. He added that generation reached a peak of 5,330MW in August and September.
However, Tegbe explained that higher national generation does not mean every community is already receiving steady electricity.
“National progress can coexist with an unreliable feeder in a particular community,” Tegbe said.
On metering, he said about 350,000 meters were installed during his first 100 days, bringing total installations to 1,004,260 as of August 2026. He added that the resolution of the AMMON litigation had cleared the way for the procurement of about 1.4 million smart meters.
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Tegbe also said the government had blocked electricity-related revenue losses estimated at about ₦120 billion annually along the Ikorodu-Sagamu corridor.
The Minister said the next phase of the reforms would focus on stabilising major transmission routes, including the Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano corridors. He also said work would continue towards developing a Transmission Super Grid.
Tegbe said technical audits had also started along the Lagos and Abuja corridors to identify areas that require attention.
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“Over the next six months, we will endeavour to turn these repairs and reforms into more visible improvements,” he added.
Industry analysts say the decision to avoid a tariff increase while clearing debts may improve generation capacity and reduce the frequency of grid collapses if the reforms are sustained.
By Anyebe Favour Angela
Reporter