FG not withdrawing electricity subsidy-Power Minister

Minister of Power, Eng. Joseph Tegbe, on Monday pushed back on claims that the federal government would withdraw subsidy on electricity with effect from next year.

The minister said at a press conference to mark his first 100 days in office that there was no such plan and that the government was actively working on many fronts to boost electricity supply to Nigerian households to reduce their suffering.

Eng. Tegbe said there was no plan at all to remove subsidy or increase electricity tariffs but that his ministry was taking active, determined and deliberate efforts to push the production, transmission and distribution of power to all households in Nigeria at reasonable rates.

Tegbe said: “Our programme rests on three pillars: stabilising the value chain, restoring market discipline and strengthening governance. Together, they connect engineering decisions to financial sustainability and public accountability. Let me explain how the work recorded in our first 100 days advances those objectives.

“Under the first pillar, the 375 MW Alaoji open-cycle power plant was restored to the national grid after three years offline. A number of substations have been upgraded. For instance, new transformers have been commissioned at Apapa, Ijora, Alausa and Lekki in Lagos unlocking 672MW of transmission capacity, while a new 300 MVA transformer has been energised at Katampe in Abuja, unlocking another 240MW of transmission capacity. 

These interventions restored existing assets and strengthened the network serving major centres of demand. “Operational record reports show generation and transmission above 5,000 MW over the past couple of weeks, compared to the 3,700 to 4,700 MW range before June, and a generation peak of 5,330 MW during August and September. Our next task is to sustain these gains and translate them into more dependable supply at customer level. 

We are aware that a national peak alone cannot describe the experience of every community,” the minister said. The minister also announced major decisions to lift the power sector into a success story that will give Nigerians cause to smile in the near future.

He said “gentlemen of the press, our list of achievements contains completed works, activities still under way and investment being mobilised. However, it is important to recognise that national progress can coexist with an unreliable feeder in a particular community. So, when we say that there are improvements in certain places, we do not categorically deny the experiences of those that are yet to benefit. The ongoing task is not a sprint, rather, it is a marathon.

“Our responsibility is to make the improvement reach every community and to explain, candidly, what remains unresolved.

“The next phase of our work advances four connected priorities. First, we will deepen grid stabilisation along the Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano transmission corridors. Lagos and Abuja serve as the initial demonstration for wider application. 

Through the Presidential Power Initiative and related programmes, we will continue strengthening weak network points, improving protection and control, and addressing the reserve capacity required for more reliable operation. Gas availability and the restoration of constrained plants are expected to progress alongside those network improvements.

“Secondly, we will initiate development of the Transmission Super Grid while continuing corridor stabilisation through the Presidential Power Initiative and related programmes. The Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano corridors remain central to this direction. We have commenced technical audits along the Lagos and Abuja corridors to identify weak points and guide investment to interventions with verified system impact.

“Thirdly, we will improve the use of existing assets and link supply more directly to productive economic clusters. Bilateral arrangements between generation and distribution companies, including the proposed pilot involving some GenCos, are intended to improve capacity utilisation and payment certainty. 

“TCN asset consolidation and 7 balance-sheet restructuring will provide the requisite support for this strategic direction. Lastly, we will prepare the infrastructure required for future demand. The East and West Grid programme, larger hydro opportunities including Mambila, and small hydros serving agricultural corridors form part of our medium to long-term plans. These are currently advancing through the necessary project-development, financing and delivery stages.

“Across these priorities, our eight-point agenda remain the guide to execution. We are working with security agencies to protect critical national assets and pursue lawful sanctions against vandalism, and assets and electricity theft. We will upgrade infrastructure and accelerate universal metering. Performance indicators and scorecards will establish responsibility for results; publication of costs and operator performance will strengthen transparency, including productivity incentive for staff in the power sector.

“Over the next six months, we will endeavour to turn these repairs and reforms into more visible improvements, in fulfilment of our commitment. Our original commitment to visible, incremental improvements remains the benchmark. We will report progress against that benchmark, including changes in supply reliability, billing accuracy and the resolution of faults and complaints,” the minister said.