Federal Government Denies Plans to Increase Electricity Tariffs, Retains Subsidies for Most Consumers

The Federal Government has dismissed reports of an impending electricity tariff increase, saying there are no plans to raise tariffs for any category of grid electricity consumers.

In a statement posted on X on Saturday, the Special Adviser to the President on Power Infrastructure in the Office of the Vice President, Sadiq Wanka, said media reports had misrepresented comments he made during a presentation at the Asharami Square 3.0 event in Lagos on July 22.

Wanka clarified that his presentation focused on investment opportunities in the power sector and the Federal Government's long-term reform agenda, not an announcement of a tariff increase.

He said the government's position remains consistent with the National Integrated Electricity Policy, finalised in December 2024 and approved by the Federal Executive Council in May 2025, which provides for a gradual transition to cost-reflective electricity tariffs.

According to him, the policy has already been implemented for Band A consumers, while there are no plans to remove subsidies for customers in other electricity service bands.

Wanka stressed that the government remains committed to protecting vulnerable households through continued tariff support and is exploring more efficient ways to deliver subsidies.

He said the Power Consumer Assistance Fund (PCAF), established under the Electricity Act 2023, is being considered as a mechanism for providing targeted subsidies directly to eligible consumers through their electricity accounts or other identity-linked channels.

According to the statement, the initiative is expected to improve transparency in subsidy administration, ensure support reaches intended beneficiaries and strengthen investor confidence in Nigeria's electricity sector.

The Federal Government also acknowledged the role of the media in communicating public policies, urging journalists to continue providing accurate information to the public.

It added that the Tinubu administration values the media's contribution to public awareness and looks forward to continued support in ensuring Nigerians receive clear and factual information on government programmes and reforms.