FG Rules Out Immediate Electricity Tariff Hike

By Adedapo Adesanya

Millions of electricity consumers across Nigeria will not face higher power bills for now, as the federal government has assured citizens that there are no immediate plans to increase electricity tariffs, dismissing reports of an impending hike across different service bands.

The Special Adviser to the President on Power Infrastructure, Mr Sadiq Wanka, made the disclosure amid growing public concern over the cost of electricity and media reports of his recent remarks.

Mr Wanka said his comments had been taken out of context, stressing that the federal government remains committed to shielding vulnerable electricity consumers from additional financial pressure.

“There is no planned tariff hike for any grid consumer across any service band. The government remains committed to protecting vulnerable households through continued tariff support,” he stated.

According to Mr Wanka, the remarks that generated public debate were made during his presentation at the Asharami Square 3.0 conference held in Lagos on July 22, where discussions centred on investment opportunities in Nigeria’s electricity sector and ongoing reforms designed to attract private capital.

He explained that his presentation focused on how the federal government’s power sector reforms are creating new opportunities for investors across electricity generation, transmission and distribution, rather than announcing any immediate changes to electricity pricing.

“The Special Adviser’s comments were made during a presentation where he addressed investment opportunities in the power sector and how the Federal Government’s reform programme has opened new avenues for investors across the power value chain,” the statement published on his official X account noted.

Mr Wanka reiterated that the government’s long-term electricity pricing framework remains anchored on the National Integrated Electricity Policy (NIEP), which was completed in December 2024 and approved by the Federal Executive Council (FEC) in May 2025.

He explained that the policy supports a gradual transition towards cost-reflective electricity tariffs, a process that has already been implemented for Band A customers, who receive a minimum of 20 hours of electricity supply daily.

However, he emphasised that the policy does not translate into an immediate tariff increase for other categories of electricity consumers.

“In that context, he reaffirmed the tariff policy direction set out in the National Integrated Electricity Policy a long-standing, publicly available policy of gradually transitioning to cost-reflective tariffs already implemented for Band A electricity consumers,” the statement added.

The presidential aide stressed that electricity subsidies would remain in place for consumers outside Band A, contrary to widespread speculation.

“For all other consumer bands, he was clear that there is no plan to remove subsidies. Rather, the Government is exploring how to deliver value and support more efficiently,” the statement said.

As part of that strategy, Mr Wanka highlighted the proposed Power Consumer Assistance Fund (PCAF), established under the Electricity Act 2023, describing it as a more transparent mechanism for delivering targeted subsidies to vulnerable electricity users.

According to him, the fund is expected to channel government support directly into consumers’ electricity accounts or through identity-linked payment platforms, ensuring that subsidies reach intended beneficiaries while improving accountability and boosting investor confidence in the power sector.