Electricity Tariffs: FG Says No Hike Planned, Subsidies to Continue

The Federal Government has dismissed reports suggesting it plans to increase electricity tariffs, insisting there is no proposal to raise charges for any category of consumers connected to Nigeria's national grid.

The clarification followed media reports that interpreted recent remarks by the Special Adviser to the President on Power Infrastructure in the Office of the Vice President, Sadiq Wanka, as indicating an imminent electricity tariff review.

In a statement issued on Saturday, Wanka said his comments had been taken out of context, stressing that the government has no plans to increase electricity tariffs across any service band.

"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 said.

According to Wanka, the comments in question were made during his presentation at the Asharami Square 3.0 event in Lagos on July 22, 2026, where he discussed investment opportunities in Nigeria's electricity industry.

He explained that the presentation focused on the Federal Government's ongoing efforts to attract private capital into the country's electricity value chain rather than announcing any new pricing policy.

Wanka said he merely restated the tariff framework contained in the National Integrated Electricity Policy, which was finalised in December 2024 and approved by the Federal Executive Council (FEC) in May 2025.

The presidential aide explained that while the policy provides for a gradual transition to cost-reflective electricity tariffs, that framework has already been implemented for Band A customers receiving a minimum of 20 hours of electricity supply daily.

He emphasised that consumers in other service bands will continue to benefit from government support.

"For all other consumer bands, there is no plan to remove subsidies. Rather, the Government is exploring how to deliver value and support more efficiently," the statement said.

Wanka also highlighted the proposed Power Consumer Assistance Fund (PCAF), a mechanism created under the Electricity Act 2023, as the government's preferred model for delivering targeted electricity subsidies.

According to him, the fund is expected to provide financial support directly to eligible consumers through their electricity accounts or other verified identity-linked platforms.

He said the approach is intended to improve transparency in subsidy administration while giving investors greater confidence in the electricity market.

The presidential aide noted that targeted subsidies would ensure government support reaches households most in need without distorting broader market reforms.

Wanka said the Tinubu administration remains committed to reforms aimed at strengthening Nigeria's electricity sector, improving service delivery and encouraging private investment while protecting vulnerable consumers.

He urged media organisations to report government policies accurately to avoid creating unnecessary anxiety among electricity users.

Nigeria's electricity pricing has remained a sensitive policy issue amid ongoing efforts to reform the power sector.

In 2024, the government approved cost-reflective tariffs for Band A consumers while retaining subsidies for customers in lower service bands. Authorities have consistently maintained that future reforms will prioritise targeted support for vulnerable households rather than blanket subsidy removal.

The latest clarification comes amid heightened public sensitivity over electricity costs following recent reforms in other sectors of the economy.