FG hints on tariff hike as power generation hits 6,003MW

 

Minister of Power Adebayo Adelabu has said Nigeria reached a remarkable generation capacity of 6,003 megawatts on March 2, 2025 under the administration of President Bola Ahmed Tinubu.

This, he said, is the first time such a feat was recorded in the nation’s history.

According to him, this achievement was followed by a peak generation evacuation of 5,801.44 megawatts on 4 March 2025.

The minister, who stated this at the sixth edition of the 2025 ministerial press briefing series in Abuja, said Nigeria saw an impressive daily energy output of 128,370.75 megawatt-hours on that day.

“The average daily power generated and distributed in the past quarter of 2025 was 5,700 MW compared with the 4,100 MW achieved in the third quarter of 2023. This indicates a growth of 1,600 MW, nearly 40% growth since we assumed office at the Ministry. 

“Given that it took the country almost 40 years to achieve an incremental 2,000 MW average energy, we accomplished this in less than two years,” he said.

Adelabu said with the improvement in generation capacity and other power reforms, the government was able to record a relatively stable electricity supply in Nigeria.

“In the last four months, Nigeria has not experienced grid disturbances. Unlike in the past when the grid collapse upon reaching 5000 megawatts, but the grid reached the highest energy of 5,801.63mw as the latest feat, and did not experience collapse,” he said.

…Gains of Band A

The minister said following the April 4, 2024 tariff hike for Band A electricity customers, Nigeria’s power sector revenue increased by 70 percent and N700 billion reduction in tariff shortfall was achieved.

“It is evident that due to our transformative tariff reforms, the market has generated an additional 700 billion Naira in revenue in 2024 reflecting a 70% increase. 

“For 2023, power sector market revenue was N1.05 trillion, just about N1 trillion, and that’s what we have been able to generate all these years, with incremental growth of 5%, 10% on an annual basis. But with the tariff review that was implemented in 2024, the revenue grew from N1 trillion in 2023 to N1.7 trillion, which is N700 billion increases.

“This is the result for cost tariff adjustment for Band A customers. Market revenue for 2024 rose for N1 trillion in 2023 to N1.7 trillion 2024 this growth in market revenue is unprecedented, as it is the highest growth previously achieved in past years is 19 percent. 19 percent to 70 percent is a commendable growth,” Adelabu said.

On the sustainability or otherwise of the current tariff, the minister said:  “While we recognise the concerns of electricity consumers, we must collectively acknowledge that maintaining the current tariff structure is unsustainable for both the government and the sector’s long-term viability. 

“The current subsidy regime significantly strains public resources that could be invested in improving service delivery and infrastructure. We are committed to working transparently with all stakeholders to implement necessary adjustments that balance affordability with the financial sustainability required to provide reliable power for all Nigerians.”

 …On metering

Speaking further, the minister said with the launch of Presidential Metering Initiative, the current administration is poised to bridge metering gap.  

He disclosed that the government targets 1.1 million meters for Nigerians by the end of 2025 and 2 million annually for the next five years.

“The launch of the Presidential Metering Initiative, backed by a ₦700 billion FAAC allocation. A new SPV has been set up with the board fully constituted to lead implementation. We target 1.1 million meters by the end of 2025, with 2 million annually for the next five years and the procurement process has started.

“Through the World Bank-funded Distribution Sector Recovery Program (DISREP), over 3.2 million meters will be procured and installed alongside meter data management solutions for DISCO optimisation. The first batch of 75,000 meters under ICB1 arrived in April, with 200,000 more expected in the month of May 2025,” he said.

Adelabu said the Distribution Companies (DisCos) were currently undergoing restructuring aimed at enhancing service delivery and operational efficiency. 

…Challenges in the sector

The minister who highlighted some challenges facing the sector; which include; debts to the Power Generation companies, vandalism etc, however, assured that government was working round the clock with relevant stakeholders to ensure that the challenges were addressed.

He said: “The huge outstanding debts to the Power Generation companies in the form of unpaid government subsidies totalling N4trn as of December 2024. N1.94trn is the unpaid subsidy for the year 2024 alone, which is now about N200m monthly. 

“Another daunting challenge we must collectively address is the rampant vandalism of critical power infrastructure across the nation, coupled with widespread electricity theft and chronic non-payment of bills. These criminal acts not only disrupt the power supply to entire communities but also impose enormous financial burdens on the sector.”

Answering questions from the media and other stakeholders, the minister assured that “N2 trillion of the debt will be paid before the end of this year.”

 …Idris reassures

Earlier in his remarks, Minister of Information and National Orientation Mohammed Idris reaffirmed the government’s commitment to advancing electricity access and affordability to all citizens across the country. 

“For President Bola Ahmed Tinubu, electricity is pivotal to the administration’s major goal of industrialising Nigeria for jobs, skills, exports and prosperity. Today will not be any different.  I have no doubt that you will hear a lot about the impressive efforts of the administration in advancing electricity access and affordability across the country”, he said. 

Idris, while acknowledging the role of the media towards nation-building, urged the media to always report accurately.

“My request to all the representatives of the media present here, and those joining virtually, remains the same: I urge you to report accurately and without recourse to sensationalism. 

“We owe it to Nigerians to present the news to them with every sense of professionalism and responsibility, with the intention of informing and educating. The media will always be powerful stakeholders in nation-building and democratic evolution, and for us as a government, we will continue to accord you all the necessary respect and support,” he said.

…Enhancing the media industry

Idris further reiterated the government’s commitment to enhancing a modern and thriving media industry in Nigeria. 

Accompanied by heads of agencies under the Federal Ministry of Information and National Orientation, the minister said he held a series of high-level engagements aimed at forging strategic partnerships to enhance the technical and technological capacity of Nigeria’s broadcasting sector.

“We were able to hold several successful meetings and forge valuable partnerships aimed at strengthening the technical and technological capacity of Nigeria’s broadcasting sector partnerships that the media industry will undoubtedly benefit from.

“I have shared these to reaffirm the commitment of the President Bola Ahmed Tinubu administration towards the lasting transformation of Nigeria’s media landscape,” the minister said.

He also disclosed his subsequent participation in the Nigerian Business Forum in Paris, France, hosted by Business France, where he met with senior executives of UNESCO to advance the establishment of a first-of-its-kind Media and Information Literacy Institute in Abuja. 

“The institute is expected to play a transformative role in the professional development of Nigerian journalists and in fostering a resilient and responsible media ecosystem. The Institute will go a long way towards strengthening Nigeria’s media environment, and supporting journalists to carry out their functions even more effectively,” he said. 

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