The Federal Government has dismissed reports suggesting an imminent increase in electricity tariffs, stating that no upward adjustment is currently planned for consumers in any of the country’s electricity service bands.
The clarification was contained in a statement issued on Friday by Sadiq Wanka, Special Adviser to the President on Power Infrastructure in the Office of the Vice President. Wanka said recent media reports had misrepresented remarks he made during a presentation at the Asharami Square 3.0 event in Lagos on July 22.
According to him, his presentation focused on investment opportunities and ongoing reforms in Nigeria’s power sector, not an announcement of new electricity tariffs.
“There is no planned tariff hike for any grid-connected electricity consumer across any service band,” Wanka said. “The Federal Government remains committed to protecting vulnerable households through continued tariff support.”
He explained that his comments referenced the policy direction contained in the National Integrated Electricity Policy (NIEP), which provides a framework for the gradual transition toward a financially sustainable electricity market while balancing consumer protection with the need to attract investment.
Wanka noted that the existing cost-reflective tariff regime for Band A customers—who are expected to receive a minimum of 20 hours of electricity supply daily—remains unchanged. However, he stressed that there are no plans to remove subsidies for consumers in Bands B, C, D, and E.
“For all other consumer bands, there is no plan to remove subsidies. Rather, the Government is exploring more efficient ways to deliver support while ensuring value for consumers,” the statement said.
He added that the Electricity Act 2023 provides the legal framework for targeted consumer support through mechanisms such as the Power Consumer Assistance Fund, which is intended to improve the efficiency and transparency of electricity subsidy administration while supporting vulnerable consumers.
The presidential aide further emphasized that any future review of electricity tariffs would be undertaken by the Nigerian Electricity Regulatory Commission (NERC) under its Multi-Year Tariff Order (MYTO) methodology. The framework takes into account factors such as inflation, foreign exchange movements, gas prices, and the cost of electricity generation and distribution before any tariff adjustments are approved.
The clarification comes amid public concern over the possibility of higher electricity costs following reports that suggested the government was considering extending cost-reflective tariffs to consumers outside Band A.
The Federal Government reiterated that no immediate tariff increase is under consideration and assured Nigerians that any future changes to electricity pricing would follow NERC’s established regulatory process, including appropriate public communication.
