News
FG Sets For Fresh Hike In Electricity Tariff
The Minister of Power, Adebayo Adelabu, has stated that the federal government is working on transitioning to a cost reflective tariff to stop an increase in the N4trn debt it owes the sector.
The minister who spoke during the Mission 300 Stakeholders’ Engagement meeting in Abuja, said this is part of reforms to set the power sector on the path of sustainability and bankability.
It would be recalled that despite the increase of electricity tariff for Band A customers, electricity consumers have complained of low electricity supply and continuous payment of faulty electricity installation.
But Adelabu said the decision is critical to the economic growth and development of Nigeria.
“Currently, there’s a huge outstanding debt to the power generation companies in the form of unpaid government subsidies which stands at about N4trn as of December 2024.
“The Federal Government is already working out modalities to defray this obligation and to ensure that further obligations are not accrued going forward, the government is working on a plan to transition the sector to a fully cost-reflective regime while implementing targeted subsidies for the economically vulnerable citizens in the country.”
The implication of this is that the government would end the subsidy regime in the electricity sector which would trigger an increase in tariff across board.
Report says government had accrued N1.1tr as subsidy payment in the first six months of 2025 making its debt climbing to N5tr.
The minister in a statement by his media aide, Bolaji Tunji, said improving power generation through recovery of idle capacities and expanding energy mix to ensure energy security and to dilute the power pool with cheaper and cleaner energy sources would be a priority.
He announced the priorities of the government in power sector reforms to include “addressing the market liquidity issues and initiating required sector reforms”.
“Other areas included expanding transmission infrastructure to deliver more power, ensuring stability of the national grid to put an end to several grid disturbances and collapses previously observed on the grid, and to further strengthen the coordination and management of the national grid.
The Minister also said that the ministry is pursuing increased renewable energy through its rural electrification and energy transition drive, to provide a reliable power supply to unserved and underserved communities.
He said the stakeholders meeting would provide an opportunity for them to align, strategize, and to build the partnerships needed to move from Nigeria Energy Compact, to concrete results, as he called on development partners, the private sector, philanthropic actors, the public sector, and the civil society organizations to rally around this mission.
The Minister of Finance, Chief Wale Edun, who spoke through zoom from Brazil also said that the reforms the government was undertaking in the power sector were critical towards unlocking the full potentials of the economy as it would lead to job creation. He said the reforms have led to over 40 percent increase in power distribution in the first quarter of 2025.
Cost reflective tariff versus allowed tariff
The cost reflective tariff for Band A – Non-MD customers is N231.79 while the allowed tariff is N209.50, Band A – MD1, cost reflective tariff is N225.90 while allowed tariff is N209.50 similarly, cost reflective tariff for Band A – MD2 is N220.01 while allowed tariff is N209.50.
For Band B – Non-MD, cost reflective tariff is N223.94 while allowed tariff is N68.96; Band B – MD1 cost reflective tariff is N220.01 while allowed tariff is N67.18, Band B – MD2, cost reflective tariff tariff is N216.08 while allowed tariff is N67.12.
For Band C- Non-MD, cost reflective tariff is N209.32 while allowed tariff is N56.38; Band C-MD1 cost reflective tariff is N200.37 while allowed tariff is N54.64 and Band C – MD2 cost reflective tariff is N200.37 while allowed tariff is N54.64.
Band D – Non-MD cost reflective tariff is N164.34 while allowed tariff is N39.67; Band D – MD1 cost reflective tariff is N207.67 while allowed tariff is N55.4; Band D – MD2 cost effective tariff is N207.56 while allowed tariff is N55.43.
Lastly, Band E – Non-MD cost reflective tariff is N145.07 while allowed tariff is N39.44, Band E – MD1 cost reflective tariff is N207.35 while allowed tariff is N55.43 and Band E – MD2 cost reflective tariff is N207.35 while allowed tariff is N55.43.
Consumers kick
According to a Daily Trust report, the President of Nigeria Consumer Protection Network, Kunle Olubiyo, said any increment with the current service delivery means electricity consumers will be fleeced by utility companies.
He said there has not been an increase in power generation, transmission infrastructure or upscale of distribution networks despite band segmentation helping to triple the inflow of revenue in the last one year.
“If you increase across boards, what assurance will there be of cost-reflective service? The Performance Improvement Plan, and investment in infrastructure, in the last 10 years, have not brought about any increase in generation, transmission evacuation, and distribution.
“You can imagine that between 2015 to date, we’ve only added 400 megawatts, because as of the time of Jonathan’s administration, we celebrated equilibrium of generation, transmission, and distribution at 5,600 megawatts. And now, since 2015, when Jonathan was leaving, to date we’ve not been able to hit 600 megawatts.”
He added that the government needs to make decisions to reflect political economy and political sensitivity, adding they should put people at the heart of its policies.
“The bullets should not be fired simultaneously such that it may have unintended consequences politically for the present administration. So, tariffs should not be at the expense of enforcement or implementation of the commitment to service level agreement.”
On his part, the CEO at Sage Consulting & Communications, Bode Fadipe, said the issue of liquidity has been a major challenge in the sector which has affected investment.
He said as long as there is no right investment in the sector, the sector will not progress.
But there is also the second argument that at what point can you say that you have achieved cost reflectivity, given the number of adjustments that you have seen in the sector, vis-a-vis the performance of the sector itself? What has been the consequence?”
He added that Band A customers that have increased the revenue in the sector are still not enjoying the amount that they pay for 20 hours and above.
“When you come from that perspective, you then begin to wonder whether another adjustment, or what has been described as cost reflectivity, will solve the problem.”
He stated that this means cost reflectivity is not the only problem that is plaguing the sector.
‘We must stop concentrating on costs’
“Why are we not addressing the other issues, policy issues, for instance, that are plaguing the sector? Why is it that it is only costs that we are concentrating on, and we are not looking at other issues that are associated with the sector? These are fundamental things. I do concede that the liquidity issue has been a historical factor, but is it the only problem that requires the kind of attention that liquidity is receiving?”
“I know that Generation is being owed about N4tr and the government is wondering where will they get the money from as the market is under that burden, but is it cost reflectivity alone that will bring about a translation into the power sector that we all desire? So for me, I think we really need to sit down and do a critical examination of the sector, and not that we’ll just be adjusting price alone.”
An electricity consumer on Band C, Abubakar Aliyu, said he gets less than 6 hours of electricity daily and on some days his community in Gwagwalada would be in total darkness.
He said any increase in electricity tariff will have to come with increased service, adding that he doubts if the DisCos have the capacity to do it.
“It is just like the electricity is being rationed as the electricity fluctuates daily. This move will be very bad as we all know how poor the DisCos are in terms of service delivery and repairs of faults. Even if the government wants to increase the tariff, they should ensure everything is in order first.”
The United States has condemned the killing of members of the family of Plateau-based cleric, Rev. Ezekiel Dachomo, describing the attack as horrific and urging Nigerian authorities to ensure those responsible are brought to justice.
In a statement shared on X on Thursday, the US Department of State’s Bureau of African Affairs expressed condolences to the victims’ families and called for stronger measures to prevent further attacks on vulnerable communities across Nigeria’s Middle Belt.
“The United States strongly condemns the horrific killing of members of Rev. Ezekiel Dachomo’s family in Plateau State, Nigeria. The continued violence targeting Christian communities and other vulnerable populations in Nigeria’s Middle Belt is deeply alarming,” the bureau said
The US said it had already engaged Nigerian officials on the worsening security situation, stressing that urgent action was needed to curb recurring attacks and hold perpetrators accountable.
“As I discussed last week with Nigerian officials, we must do more to prevent violent acts. The perpetrators must be held accountable, and urgent action is needed to strengthen security and protect Christians and other vulnerable communities,” the statement added.
The bureau reaffirmed Washington’s commitment to working with the Nigerian government to combat terrorism and violent extremism, stressing that Christians and other Nigerians should be able to practise their faith without fear of violence.
The statement followed the July 12 attack on Kum community in Riyom Local Government Area of Plateau State, where nine members of Rev. Dachomo’s extended family, including a two-month-old baby, were killed.
According to the cleric, the attackers, believed to be armed Fulani militias, asked for him by name before opening fire on his relatives.
Dachomo, who serves as Regional Chairman of the Church of Christ in Nations (COCIN) in Barkin Ladi Local Government Area, said his family had repeatedly been targeted because of his outspoken criticism of the violence in Plateau State.
He recalled that his grandmother and an uncle were also killed in previous attacks, adding that days after burying his relatives, he received a written death threat from the same group, warning that he would be their next target.
The Anambra State Government has clarified that its indefinite ban on graduation ceremonies applies to all kindergarten, primary and secondary schools across the state, except for students completing Senior Secondary School (SS3).
The clarification was contained in a press statement issued on Friday by the Commissioner for Information and Value Reformation, Law Mefor, following what the government described as public enquiries and concerns over the directive.
According to the government, Governor Chukwuma Soludo ordered the suspension of graduation ceremonies to reduce the financial burden imposed on parents by schools.
“The essence is to reduce the financial burden on parents,” the commissioner said.
The government explained that the ban covers all forms of graduation-related events, including “passing out,” “cross over,” and any similar ceremonies organised by schools.
Mefor further stated that the directive applies to both public and private schools operating in Anambra State.
However, he noted that students graduating from Senior Secondary School (SS3) are exempted from the ban.
The commissioner stressed that graduation ceremonies for SS3 students remain optional and, where organised, must not involve any levies or financial demands on students or their parents.
“Graduation ceremonies for students exiting Senior Secondary School are optional and, where carried out, must be conducted without any form of levy or financial demand on students and parents,” he said.
The state government also warned that school proprietors and administrators who violate the directive would face severe consequences.
“Any school management found in violation of this directive will face serious sanctions, which may include the closure of such school,” Mefor stated.
The clarification followed widespread reactions after the state government announced the suspension of graduation ceremonies, with many parents and school owners seeking details on the categories of schools affected and whether any exceptions would be allowed.
Governor Chukwuma Soludo, in October 2025, banned graduation ceremonies and Christmas parties in schools across the state as part of efforts to reduce the financial burden on parents and guardians.
The governor said the policy was designed to make education more affordable and equitable for families while discouraging unnecessary expenses associated with school activities.
Expressing concern over what he described as avoidable financial pressure on parents, Soludo had also directed schools to discontinue the use of textbooks designed for pupils to write in.
“This is to owners and administrators of government, private, and mission schools in Anambra: we have set out some basic standards to ensure that the poor are not made to spend so much just because their children are in school.
“One of the measures includes discontinuing the use of textbooks designed for students to write in. This practice forces parents to buy new textbooks annually.
“Once a child finishes a class, he should be able to pass on his textbooks to his younger siblings,” the governor had said.
At least, one person has been confirmed dead leaving others with different categories of injury, following an early-morning multiple-car crash along the Kara Bridge, inward Mowe/Ibafo on the Lagos-Ibadan Expressway, which left hundreds of motorists stranded and grounded economic activities.
In a detailed report of the incident, the FRSC, Lagos Sector Command, said the first crash occurred at about 12:05 a.m. on the outbound carriageway towards Ibadan, involving five articulated trucks and one Toyota Sienna vehicle.
The FRSC report also said rescue and recovery operations were ongoing when another crash occurred at the inbound carriageway towards Lagos involving a commercial bus.
It added that Lagos State Traffic Management Agency LASTMA officials, FRSC officials, officials of the Lagos State Emergency Management Agency LASEMA, and police operatives were on the ground to manage the situation. Tow trucks were also present as officials continued recovery operations.
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