⚡ Sh*ck Looms Nationwide As FG Mulls Another Electricity Tariff Hike

The Federal Government is taking renewed steps to phase out electricity subsidies by transitioning to a fully cost-reflective tariff system, as part of efforts to address the ballooning ₦5 trillion debt in Nigeria’s power sector.....KINDLY READ THE FULL STORY HERE▶

Minister of Power, Adebayo Adelabu, disclosed this on Tuesday at the “Mission 300” Stakeholders’ Engagement in Abuja. He described the move as a vital component of broader reforms aimed at ensuring the sustainability and bankability of the sector.

Adelabu revealed that as of December 2024, government subsidy debts to electricity generation companies had reached ₦4 trillion. In the first half of 2025 alone, an additional ₦1.1 trillion in subsidies was incurred, pushing the total to ₦5 trillion.

To address this unsustainable burden, the government plans to end blanket subsidies and implement a tariff structure that reflects the true cost of electricity production, while still offering targeted support for low-income and vulnerable Nigerians.

The planned reform is expected to lead to notable tariff increases, especially for consumers on Band B and lower, where current charges fall significantly below actual supply costs.

Tariff Comparison (Cost vs Allowed Tariff):

• Band A: ₦231.79 (cost) vs ₦209.50 (allowed)

• Band B: ₦223.94 (cost) vs ₦68.96 (allowed)

• Band C: ₦209.32 (cost) vs ₦56.38 (allowed)

• Band D: ₦164.34 (cost) vs ₦39.67 (allowed)

• Band E: ₦145.07 (cost) vs ₦39.44 (allowed)

Consumer Groups Raise Concerns

President of the Nigeria Consumer Protection Network, Kunle Olubiyo, cautioned that raising tariffs without tangible service improvements would amount to exploitation.

“We haven’t seen any meaningful progress in power generation or distribution, despite the massive revenue increases,” he said, noting that just 400MW of capacity has been added since 2015.

Bode Fadipe, CEO of Sage Consulting & Communications, added that liquidity problems are only part of the crisis.

“Despite adjustments, many Band A customers still don’t enjoy the promised 20-hour supply. There are deeper policy and infrastructure failures at play,” Fadipe argued.

‘We Only Get 6 Hours a Day’ – Residents Lament

Abubakar Aliyu, a Band C consumer in Gwagwalada, said his community often endures entire days without power.

“How can they justify raising tariffs when we barely get six hours of electricity? The DisCos are unreliable in maintenance and customer response,” he said.

Reforms and Expectations

Adelabu, through a statement by his media aide Bolaji Tunji, outlined key reform areas: sector liquidity, infrastructure upgrades, rural electrification, renewable energy integration, and grid stability.

Finance Minister Wale Edun, speaking virtually from Brazil, stated that reforms had already led to a 40% rise in power distribution in Q1 2025, with further growth expected to support job creation.

Calling for coordinated effort, Adelabu emphasized, “This mission demands alignment, strategic planning, and a strong commitment to delivering measurable results.”