Nigeria's Minister of Power, Joseph Tegbe, has stated that the Federal Government has no immediate plans to increase electricity tariffs. Instead, the administration of President Bola Tinubu aims to stabilize the power sector, restore market discipline, and strengthen governance across the electricity value chain. Tegbe made this assurance in Abuja while briefing Power Correspondents on his first 100 days in office, which began on June 8.
Tegbe explained that his first 100 days were focused on diagnosing the problems confronting the sector and initiating measures to stabilize the electricity value chain. The diagnosis revealed constraints at every segment of the chain, including limited gas supply to power stations due to damaged pipelines and unfavorable commercial terms. Additionally, the generation segment remains heavily dependent on thermal plants, many of which are affected by ageing equipment and deferred maintenance.
The minister disclosed that the sector diagnosis also revealed that only 27% of generation companies' bills were being paid, undermining their capacity to maintain their plants and meet obligations to gas suppliers. On transmission, Tegbe noted that the national grid was constrained by vandalized towers and lines, overstretched equipment, and frequent tripping. The distribution segment also faces significant challenges, including aggregate technical, commercial, and collection losses of between 30 and 40%.
Despite these challenges, Tegbe reported some "modest gains" between June 8 and September 16. These include the restoration of the 375 megawatts Alaoji open-cycle power plant, which had been offline for three years. He also cited the upgrade of substations in Lagos, which unlocked 672MW, and the installation of a new 300MVA transformer at Katampe, Abuja, unlocking an additional 240MW.
According to Tegbe, power generation and transmission have risen above 5,000MW in recent weeks, compared to between 3,700MW and 4,700MW before June. A peak of 5,330MW was recorded in August and September. Furthermore, over 300 containers of Transmission Company of Nigeria (TCN) equipment have been released from ports, and two solar and mini-grid installations across 30 states have delivered 43.6MW and facilitated 41,735 new connections.
The minister also reported significant progress in metering, with about 350,000 meters installed within the first 100 days, bringing the cumulative number of meters installed to 1,004,260 as of August. An additional 90,000 meters were installed in military formations. On the financial challenges confronting the sector, Tegbe stated that an estimated N1.23 trillion has been raised towards settling the N3.3 trillion legacy debt owed to generation companies.
Looking ahead, Tegbe outlined plans to deepen grid stabilization along key corridors, pursue the development of a transmission super grid, and strengthen links between electricity supply and productive clusters. He appealed to Nigerians to support the ongoing reforms and join efforts to protect electricity infrastructure from vandalism and theft, emphasizing the government's commitment to a disciplined approach, grid stability, and visible improvements in electricity supply.
Key points
- The Nigerian government has no immediate plans to increase electricity tariffs.
- The power sector has recorded some modest gains, including the restoration of the 375 megawatts Alaoji open-cycle power plant.
- The government aims to deepen grid stabilization and pursue the development of a transmission super grid in the next six months.
