Power Minister Joseph Tegbe says the government is prioritising sector liquidity, metering and infrastructure upgrades instead of increasing tariffs.

The Federal Government has ruled out an immediate increase in electricity tariffs, saying its current priority is to stabilise the power sector and address the financial challenges affecting electricity generation, transmission and distribution.

Minister of Power Joseph Tegbe disclosed this on Monday, September 21, 2026, during a media briefing in Abuja to mark his first 100 days in office.

Tegbe said the government had raised an estimated ₦1.23 trillion towards addressing part of the power sector’s accumulated debt, which he put at about ₦3.3 trillion. He said the financing was expected to improve liquidity across the electricity value chain. 

The minister’s statement comes amid renewed concerns about the financial sustainability of Nigeria’s electricity market and reports suggesting that consumers could face another tariff increase.

“We have no plan to increase electricity tariffs. There is no immediate plan by this government to increase tariff. It is not on our table; it is not on our agenda,” Tegbe said. 

Government Focuses on Sector Stabilisation

Tegbe said the government had spent his first 100 days conducting a diagnosis of the electricity value chain rather than relying solely on additional generation projects.

According to him, the assessment identified problems affecting gas supply, generation, transmission and distribution.

He said damaged gas pipelines and commercial conditions had constrained gas supplies to power plants, while Nigeria’s generation fleet remained heavily dependent on ageing thermal facilities.

The minister also identified deferred maintenance and stalled projects as factors limiting the ability of existing generating plants to deliver their available capacity.

At the distribution level, Tegbe said aggregate technical, commercial and collection losses remained between 30 and 40 per cent.

He added that generation companies were receiving payment for only about 27 per cent of their bills, affecting their ability to maintain facilities and pay gas suppliers.

Tegbe described the problems across the electricity market as interconnected, arguing that weaknesses in one part of the value chain could worsen challenges elsewhere.

Unpaid bills, for instance, affect the ability of operators to maintain infrastructure and meet gas obligations, while unreliable electricity supply can reduce collections from customers. 

Power Generation Rises Above 5,000MW

The minister said electricity generation and transmission had remained above 5,000 megawatts in recent weeks, compared with between 3,700MW and 4,700MW before June 2026.

He said the sector recorded a generation peak of 5,330MW during August and September.

However, Tegbe acknowledged that higher national generation figures do not automatically mean reliable electricity for every community.

“National progress can coexist with an unreliable feeder in a particular community,” he said, adding that the government recognised that some consumers had yet to experience the reported improvements. 

The minister said the government’s next challenge would be to translate the gains recorded at the national level into more dependable electricity supply for individual customers.

Alaoji Plant Returns to National Grid

Tegbe said the government had restored the 375MW Alaoji open-cycle power plant to the national grid after it remained offline for three years.

He also disclosed that new transformers commissioned at Apapa, Ijora, Alausa and Lekki in Lagos had unlocked 672MW of transmission capacity.

A new 300MVA transformer energised at Katampe, Abuja, also unlocked an additional 240MW of transmission capacity, according to the minister. 

The interventions are part of efforts to recover existing capacity and strengthen the transmission network instead of depending only on the construction of new power plants.

Tegbe said the government would focus on improving the performance of existing infrastructure while addressing weaknesses that prevent available electricity from reaching consumers.

Government Expands Metering Programme

Metering is another major area of the government’s electricity reform programme.

Tegbe disclosed that approximately 350,000 electricity meters were installed during his first 100 days in office.

The installations brought cumulative meter deployment to 1,004,260 as of August 2026.

The minister said the resolution of litigation involving the AMMON metering programme had also unlocked the procurement of about 1.4 million smart meters across affected programmes. 

He added that about 90,000 meters had been installed in military formations.

Another 5,000 young Nigerians are undergoing training as smart-meter installers under the Power Force programme.

The expansion of metering is aimed at improving billing accuracy and reducing reliance on estimated billing, which remains a major source of complaints among electricity consumers.

FG Moves Against Revenue Losses

Tegbe also disclosed that the government had blocked revenue leakages associated with energy theft and other losses along the Ikorodu-Sagamu corridor.

According to him, the losses had been estimated at approximately ₦120 billion annually.

He said improving billing, collection and remittance would help preserve resources needed to maintain and improve electricity supply.

The minister said tackling revenue leakage was necessary because additional generation alone would not resolve the financial problems affecting the electricity market.

The government is therefore combining infrastructure interventions with measures designed to strengthen revenue collection and improve payment discipline across the value chain. 

Transmission Corridors Targeted for Upgrade

Tegbe said the next phase of the government’s electricity reforms would focus on stabilising major transmission corridors.

The priority corridors include Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano.

The government also plans to begin work towards a Transmission Super Grid designed to strengthen the movement of electricity across the national network.

Technical audits have commenced along the Lagos and Abuja corridors to identify weaknesses and determine where interventions could have the greatest effect.

The minister said the government would measure progress over the next six months using indicators including supply reliability, billing accuracy and the speed at which faults and complaints are resolved. 

Tariff Decision Comes Amid Wider Power Reforms

The decision not to immediately increase electricity tariffs comes as the government works to address the structural and financial problems within the sector.

Tegbe has previously said the administration intends to phase out electricity subsidies as part of efforts to make the sector financially sustainable, while distinguishing that longer-term reform from an immediate tariff increase. 

For now, the minister’s latest position is that consumers should not expect an immediate tariff increase.

Instead, the government says it is concentrating on clearing part of the sector’s debt, improving liquidity, expanding metering, strengthening transmission infrastructure, recovering stranded generation capacity and reducing revenue losses.

The effectiveness of these measures will ultimately depend on whether the improvements recorded in generation and infrastructure translate into more reliable electricity at household and business level.

Tegbe acknowledged that national generation figures alone do not capture the experience of every electricity consumer.

The government has therefore set the next six months as another period for measuring whether its interventions can deliver more consistent supply, more accurate billing and faster resolution of faults across Nigeria’s electricity market.

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Nigeria’s power generation companies have raised fresh concerns over the growing financial challenges facing the electricity sector, warning that increasing debt obligations and stranded generation capacity continue to threaten the industry’s sustainability.

Industry operators said the sector has recorded an additional debt burden estimated at ₦1 trillion, adding to longstanding liabilities that have accumulated over the years. They noted that persistent payment shortfalls across the electricity value chain have placed significant pressure on generation companies, limiting their ability to meet operational and financial obligations.

The companies also expressed concern over stranded power capacity valued at approximately ₦2.376 trillion. According to industry stakeholders, stranded power refers to electricity generation capacity that remains underutilised due to transmission, distribution, and market constraints despite investments made to increase production capacity.

Power producers argued that the continued inability to fully evacuate and distribute generated electricity has resulted in substantial financial losses while discouraging further investment in the sector. They maintained that significant resources have been committed to expanding generation capacity, yet much of the available power cannot reach end users because of infrastructure limitations.

Stakeholders further highlighted the broader liquidity crisis affecting the Nigerian Electricity Supply Industry, noting that outstanding invoices, foreign exchange pressures, and rising operational costs have continued to weaken the financial position of generation companies. Industry figures indicate that debt owed to power producers has risen sharply over the years, creating challenges for plant maintenance, gas procurement, and future investments.

The Association of Power Generation Companies has repeatedly called for urgent intervention to address payment backlogs and improve market efficiency. Industry leaders believe that resolving the debt burden and eliminating constraints responsible for stranded capacity would significantly improve electricity supply and attract fresh investment into the sector.

Experts have also stressed the need for stronger coordination across the generation, transmission, and distribution segments of the electricity market. They argue that without improvements in infrastructure and market settlement mechanisms, Nigeria may continue to face challenges in fully utilising its installed power generation capacity despite growing demand for electricity.

As discussions on sector reforms continue, power producers remain hopeful that government-led initiatives aimed at addressing outstanding liabilities and improving liquidity will provide relief and support long-term stability within the electricity industry.

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Nigeria’s electricity industry is facing deepening financial strain as Electricity Generation Companies (GenCos) reveal that total sector debt has climbed to N6.5 trillion, with projections indicating it could rise to N8.8 trillion before the end of 2026.

In a memo addressed to the Federal Ministry of Power, the GenCos warned that persistent liquidity shortfalls are threatening the stability of the entire power value chain and called for urgent structural reforms.

N2.4trn Debt Accumulated in 2025

The power producers disclosed that N2.4 trillion of the total debt was accumulated in 2025 alone, largely due to a recurring N200 billion monthly shortfall.

According to the memo, out of about N280 billion in monthly invoices, only 35 percent is paid, leaving a widening funding gap.

They cautioned that if the trend continues, total debt could escalate to N8.8 trillion by December 2026.

Generation Capacity vs Supply Reality

GenCos also highlighted structural inefficiencies in the sector. Although installed generation capacity has risen to 15,500 megawatts, only about 5,000 megawatts are transmitted to end users.

The companies stressed that despite liquidity challenges, fuel constraints, and infrastructure bottlenecks, they continue operations daily to sustain power generation nationwide.

Call for Presidential-Led Reform

To avert systemic collapse, the GenCos recommended:

• A presidential-led power sector reform initiative

• A long-term debt resolution framework

• Strengthened coordination across the electricity value chain

• Policies aimed at restoring investor confidence

Expert Calls for Governance Discipline

Reacting to the development, energy economist Prof. Wumi Iledare emphasized the need for governance discipline, particularly as states increase participation in electricity generation and distribution.

He noted that the Nigerian Bulk Electricity Trading Plc (NBET) remains central to market stability, serving as a creditworthy intermediary that supports investor confidence in a fragile electricity market.

However, he warned that sustainable reform requires alignment across gas supply, transmission, and distribution, adding that partial or strategic vertical integration may enhance efficiency and reduce market fragmentation.

FG’s N501bn Intervention

The Federal Government recently issued a N501 billion power sector bond under the Presidential Power Sector Debt Reduction Programme to address long-standing arrears owed to generation companies.

The bond, which achieved full subscription, attracted participation from pension funds, banks, and institutional investors. The initiative is expected to ease liquidity constraints that have weakened the sector for more than a decade.

Despite this intervention, GenCos maintain that deeper structural reforms are required to prevent further deterioration of Nigeria’s electricity industry.

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