Nigeria's federal government has firmly denied widespread reports that it plans to increase electricity tariffs in 2026, stating that no such proposal exists for any service band. The clarification comes after media coverage of remarks made by the Special Adviser to the President on Power Infrastructure, Sadiq Wanka, sparked public concern over an imminent hike.
Government Responds to Misinterpreted Comments
In a statement issued on Saturday, Wanka explained that his comments at the Asharami Square 3.0 event in Lagos on July 22 were taken out of context. He had been discussing investment opportunities in Nigeria's power sector and ongoing reforms aimed at attracting private capital, not announcing new tariff increases. "There is no planned tariff hike for any grid consumer across any service band. Government remains committed to protecting vulnerable households through continued tariff support," Wanka said.
He emphasized that the conversation around cost-reflective pricing was rooted in the National Integrated Electricity Policy, finalized in December 2024 and approved by the Federal Executive Council in May 2025. That policy supports a gradual transition to cost-reflective tariffs, a process already begun for Band A consumers, but does not mandate immediate increases for other bands.
Focus on Targeted Subsidies via PCAF
Rather than cutting subsidies for lower-band consumers, the government is working to make subsidy delivery more efficient. Wanka pointed to the Power Consumer Assistance Fund (PCAF), established under the Electricity Act 2023, as a key mechanism. The PCAF is designed to channel targeted support directly to vulnerable electricity users through accounts or identity-linked platforms, improving transparency and boosting investor confidence in the sector.
According to reports from Punch, the government insists that no tariff increase is planned for any grid consumer. Wanka also called on the media to provide accurate, contextual coverage of electricity sector reforms, acknowledging the role journalists play in communicating government policy.
NERC Orders Refunds for MAP Meters
In a separate but related development, the Nigerian Electricity Regulatory Commission (NERC) has ordered electricity distribution companies to refund N20.33 billion owed to customers who paid for meters under the Meter Asset Provider (MAP) scheme. The directive, issued under Order No: NERC/2026/025, requires that the outstanding amount be recovered and fully repaid to affected customers within 12 months, starting from March 1, 2026. The order was signed on February 27, 2026, by NERC chairman Musiliu Oseni and commissioner for legal, licensing and compliance Dafe Akpeneye.
Under the MAP framework, electricity consumers who purchase meters directly are entitled to refunds through energy credits from their respective distribution companies. This move is expected to provide relief to millions of Nigerians who have been waiting for refunds.
Government's Broader Energy Reforms
The Tinubu administration has been pursuing comprehensive reforms in the power sector, including the passage of the Electricity Act 2023 and the National Integrated Electricity Policy. These initiatives aim to attract private investment, improve grid reliability, and ensure that subsidies reach the most vulnerable. Wanka's remarks at the Lagos event highlighted these reforms, emphasizing long-term policy direction rather than immediate price changes.
Despite the clarification, some analysts note that the gradual move toward cost-reflective tariffs could eventually lead to higher costs for consumers if not accompanied by improved service delivery. However, the government has so far maintained its commitment to protecting low-income households through the PCAF and other support mechanisms.
