The federal government has moved to quash reports suggesting an electricity tariff increase is imminent, insisting that no rate hike is being planned across any consumer category and that subsidies protecting low-income households will remain in place.
Sadiq Wanka, special adviser to the President on Power Infrastructure in the Office of the Vice President, issued a statement on Friday denying that recent media reports accurately reflected comments he made at an industry gathering in Lagos on July 22.
"There is no planned tariff hike for any grid consumer across any service band," the statement read. It added that the government "remains committed to protecting vulnerable households through continued tariff support."
Wanka's clarification came after remarks he delivered at the Asharami Square 3.0 conference, where he discussed investment opportunities created by the Tinubu administration's reforms to the power sector.
According to the statement, Wanka was reaffirming existing policy rather than announcing new changes at that event. The policy in question was set out in the National Integrated Electricity Policy, which was finalised in December 2024 and received Federal Executive Council approval in May 2025.
That document outlines a gradual transition toward cost-reflective pricing, though such changes currently apply only to Band A customers—typically city dwellers who get at least 20 hours of daily power supply.
For all other consumer bands, Wanka made clear the government has no intention of removing subsidies, the statement said. Rather, officials are exploring ways to make current support systems more efficient and better directed at those who need it most.
The Power Consumer Assistance Fund forms the backbone of these efforts. Created under the Electricity Act 2023, this mechanism delivers subsidies straight to vulnerable consumers via their power accounts or other identity-based systems.
Officials view the fund as improving how subsidies reach consumers while also rebuilding investor confidence in a sector that's battled decades of weak investment, currency troubles, and poor cost recovery.
The statement also praised media platforms like Asharami Square for helping journalists communicate the "full context of complex policy discussions." It concluded by saying the government "counts on the continued support of the media in this important national duty."
