Federal Government Denies Reports Of Impending Power Tariff Increase
The Federal Government has firmly dismissed widespread media reports suggesting an imminent increase in electricity tariffs across the country, clarifying that there is currently no proposal to raise charges for any category of consumers connected to the national grid. The official denial was issued on Saturday by Sadiq Wanka, the Special Adviser to the President on Power Infrastructure in the Office of the Vice President, to correct public misconceptions. Wanka emphasized that the administration remains committed to maintaining existing power subsidies to protect citizens from additional economic burdens.
The government clarified that the recent media reports completely misrepresented comments made by the presidential aide during a presentation at the Asharami Square 3.0 event, which took place in Lagos on July 22, 2026. According to Wanka, his remarks on the energy sector were taken out of context and wrongly interpreted as a signal for a tariff review. The statement reassured energy consumers that the current pricing structure remains intact and urged the public to disregard any claims of a planned price hike.
“There is no planned tariff hike for any grid consumer across any service band. The government remains committed to protecting vulnerable households through continued tariff support,” he said.
He explained that his presentation focused on investment opportunities in Nigeria’s electricity sector and the Federal Government’s ongoing power sector reforms aimed at attracting private capital across the electricity value chain.
Wanka noted that he merely reiterated the tariff policy outlined in the National Integrated Electricity Policy, which was finalised in December 2024 and approved by the Federal Executive Council in May 2025.
The presidential aide explained that the nation's energy policy is designed around a gradual transition toward cost-reflective electricity tariffs, a pricing framework that has already been fully deployed for premium Band A customers. However, he emphasized that government financial support will remain firmly in place for consumers across all other service bands, ensuring that the broader public is protected from sudden price shocks. The official statement explicitly clarified that there is absolutely no plan to dismantle subsidies for these remaining tiers, noting instead that the administration is actively exploring alternative strategies to deliver energy value and welfare support far more efficiently.
To achieve this long-term stability, the administration is shifting toward more transparent and targeted relief mechanisms rather than blanket price controls. Wanka highlighted the upcoming operationalization of the Power Consumer Assistance Fund (PCAF), a strategic initiative legally established under the Electricity Act of 2023. The government intends to use this specialized fund as its primary channel to route targeted financial subsidies directly to vulnerable electricity users nationwide, ensuring that public resources directly benefit the citizens who need them most while the energy sector stabilizes.
The proposed initiative is specifically designed to route targeted financial support directly through consumers' electricity accounts or other verified, identity-linked digital platforms. By shifting away from blanket opaque funding, this modern payment system aims to drastically improve transparency in subsidy administration while simultaneously boosting international investor confidence in Nigeria's power market. The administration believes that providing a clear, verifiable trail of where public funds are directed will stabilize the energy market and attract critical infrastructure investments without hurting the public.
Furthermore, while commending the media for its vital role in keeping citizens informed, Wanka urged journalists to maintain strict accuracy when reporting on complex state regulations to prevent spreading false panic among electricity consumers. He reaffirmed that the administration of President Bola Tinubu remains deeply committed to execution of reforms that structurally strengthen the national power sector. Crucially, the statement emphasized that these long-term macro-reforms will not come at the expense of ordinary citizens, pledging sustained subsidy support to cushion vulnerable households.