Minister of Power, Mr Joseph Tegbe, has assured Nigerians that the Federal Government has no immediate plan to increase the electricity tariff. Tegbe gave the assurance in Abuja while briefing Power Correspondents on his 100 days in office. According to him, the focus of the administration of President Bola Tinubu is to stabilise the value chain, restore market discipline and strengthen governance in the power sector.
Tegbe, who assumed office on June 8, said his first 100 days were devoted to the diagnosis and stabilisation of the power sector. Upon assuming office, the diagnosis undertaken at the onset revealed constraints at every segment of the electricity value chain. Gas supply to power stations was limited by damaged pipelines and commercial terms that discouraged investment.
The minister said the generation fleet was heavily dependent on thermal plants, with ageing equipment, deferred maintenance, stalled projects and capacity unable to reach consumers. The sector diagnosis revealed payment of only 27 per cent of generation companies’ bills, undermining their ability to maintain plants and pay gas suppliers. This has resulted in a significant challenge for the power sector.
Tegbe also identified challenges in the power transmission network, including vandalised towers and lines, overstretched equipment, and frequent tripping. The distribution segment suffered aggregate technical, commercial and collection losses of 30 per cent to 40 per cent, alongside inadequate metering, estimated billing, damaged assets and weak payment discipline.
Despite these challenges, the minister listed modest gains recorded between June 8 and Sept. 16, including the restoration of the 375 Mega Watts (MW) Alaoji open-cycle plant after three years offline. Other gains include the upgrade of substations at Apapa, Ijora, Alausa and Lekki in Lagos, unlocking 672MW, and a new 300 Mega Volt Ampree (MVA) transformer at Katampe, Abuja, unlocking 240MW.
Tegbe said that there had been a rise in generation and transmission above 5,000MW in recent weeks, up from 3,700-4,700MW before June, with a peak of 5,330MW in August and September. He also disclosed the release of over 300 containers of TCN equipment from the ports and the installation of 350,000 meters in 100 days, cumulative 1,004,260 as at August.
The minister appealed to Nigerians to support the reforms and help protect power infrastructure against vandalism and theft. He said that an estimated N1.23 trillion had been raised towards settling the N3.3 trillion power sector legacy debt to generation companies. The next six months would focus on deepening grid stabilisation along key corridors and developing the transmission super grid.
Key points
- The Federal Government has no immediate plan to increase the electricity tariff.
- The power sector has recorded modest gains, including the restoration of the 375MW Alaoji open-cycle plant.
- The minister has appealed to Nigerians to support the reforms and help protect power infrastructure.
