FG Rules Out Immediate Electricity Tariff Hike, Raises N1.23trn for Power Debt

The Federal Government has ruled out any immediate increase in electricity tariffs, saying it is instead prioritising efforts to address the financial challenges facing the power sector.

Minister of Power, Joseph Tegbe, disclosed this on Monday during a media briefing in Abuja to mark his first 100 days in office. He said the government had raised an estimated N1.23 trillion as part of efforts to settle outstanding obligations in the electricity sector.

According to the minister, the funds form part of a broader programme addressing an estimated N3.3 trillion power-sector debt backlog. Earlier transactions under the government’s debt-reduction programme included a N501 billion bond issued in January, followed by a second issuance of N728.9 billion.

Tegbe said the government’s immediate focus was on stabilising the electricity value chain, improving supply, strengthening revenue collection and addressing challenges affecting gas supply, generation, transmission and distribution.

He also reported that power generation and transmission had remained above 5,000 megawatts in recent weeks, although he acknowledged that the improvement had not translated into reliable electricity for all communities.

The minister maintained that there was no immediate plan to increase electricity tariffs, as the government continues to pursue measures aimed at improving the financial stability and reliability of the power sector.