The federal government has ruled out any immediate increase in electricity tariffs, prioritizing instead the delivery of round-the-clock power supply across Nigeria. Power Minister Joseph Tegbe made this declaration during the groundbreaking ceremony for a 17.7-megawatt (MW) interconnected mini-grid project in Ibadan, Oyo State, an initiative organized by the Rural Electrification Agency (REA).
No Plan to Increase Electricity Tariffs
Speaking at the event on Thursday, Tegbe emphasized that the administration's focus is on building a power sector that operates reliably without burdening consumers with higher charges. He stated unequivocally: “I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power.”
This assurance echoes a similar commitment made by the minister in July, when he indicated that the federal government had no immediate plans to raise tariffs. The latest statement is intended to dispel speculation about potential hikes as the government pursues its ambitious power sector reforms.
Mini-Grid Project to Boost Generation and Economic Growth
Tegbe described the 17.7MW mini-grid project as a reflection of the government's commitment to increasing electricity generation, improving supply reliability, and creating economic opportunities. He noted that the administration is not only expanding power infrastructure but also ensuring that additional capacity directly benefits households, businesses, industries, and other productive activities.
“Our objective is clear: to increase the quantum of electricity available to Nigerians, improve the reliability of supply and ensure that electricity becomes an enabler of productivity, investment and economic growth,” Tegbe said. He added that projects like the Ibadan mini-grid are crucial for translating policy objectives into tangible infrastructure that supports communities and businesses. The initiative is part of broader federal interventions aimed at strengthening generation, transmission, and distribution infrastructure nationwide.
REA Highlights Economic Benefits of Reliable Power
Abba Aliyu, managing director of the REA, underscored the project's significance beyond just adding 17.7MW to the national grid. He explained that the real value lies in the economic activities that reliable power can enable. “This groundbreaking is about more than 17.7 megawatts of new generation capacity. It is about what that capacity will enable,” Aliyu said.
According to him, a dependable electricity supply will allow businesses to operate longer hours, reduce their reliance on expensive self-generation (such as diesel generators), and improve overall productivity. These improvements, he argued, can attract fresh investments, create jobs, and expand economic opportunities for residents and businesses in Ibadan and beyond.
Expanding Distributed Energy Investments Nationwide
Aliyu also revealed that the Ibadan project is part of a wider pipeline of investments being facilitated by the REA across Nigeria. He emphasized that distributed energy solutions are becoming increasingly important for expanding electricity access, improving supply reliability, and supporting economic development.
The agency, he said, will continue to promote projects that leverage private-sector investment and sustainable operating models to deliver electricity where it can generate the greatest economic impact. This strategy aligns with the government's goal of ensuring that electricity becomes a driver of productivity and growth, rather than a source of financial strain for consumers.
