FG rules out immediate electricity tariff hike, prioritises metering

The Federal Government has ruled out any immediate increase in electricity tariffs, saying its priority is to improve power supply and ensure consumers are billed according to the electricity they actually use.

The Minister of State for Finance, Doris Uzoka-Anite, said this after commissioning a 3MW captive solar hybrid power project at the University of Abuja, now Yakubu Gowon University.

The minister said the government was concentrating on improving grid reliability, expanding electricity metering and addressing the financial challenges affecting the power sector.

“There are no immediate plans to increase electricity tariffs. Our goal is to build a commercially viable power sector while protecting vulnerable consumers,” the minister said.

She said electricity generation had stabilised at around 5,000MW in recent weeks, adding that the government was also working to clear legacy debts and attract fresh investment into the sector.

According to her, expanding access to electricity and improving service delivery must accompany ongoing reforms in the power sector.

She identified universal metering under the Presidential Metering Initiative as a key priority, saying it would improve billing accuracy and transparency while ensuring consumers paid only for the electricity recorded by their meters.

The clarification comes amid renewed concerns over the possibility of another electricity tariff adjustment following discussions around reforms to the power subsidy regime.

The minister, however, said tariff increases were not currently under consideration, with the government instead focused on improving the quality and reliability of electricity supply.

University gets 3MW solar project

The minister spoke after commissioning the hybrid solar project at Yakubu Gowon University, designed to provide more reliable electricity to the university community of about 58,726 students.

The project was developed by the Rural Electrification Agency under Phase II of the Energising Education Programme.

It comprises a 3.3MWp solar photovoltaic array, 3MW AC output and a 2MWh battery storage system.

The system is also supported by dedicated grid supply when solar generation is unavailable.

The project is expected to reduce the university’s dependence on diesel generators while providing a cleaner and more stable source of electricity for academic and administrative activities.

The initiative also includes 388 solar-powered street lights installed across the campus.

The lighting infrastructure is expected to improve visibility and security and provide a safer environment for students and staff after dark.

The minister said the project reflected the government’s broader effort to improve electricity supply while addressing structural and financial problems that have continued to constrain the sector.

She said the administration was pursuing reforms aimed at creating a financially sustainable electricity market capable of attracting investment and supporting improvements across generation, transmission and distribution.

The government also said reforms to the electricity subsidy framework would continue to take account of vulnerable consumers.

For now, the administration said its immediate focus would remain on improving supply, expanding metering, addressing sector debts and strengthening the overall viability of the electricity market rather than raising electricity tariffs.