Nigerians Brace for Higher Electricity Tariffs as Tunubu Govt. to End Power Subsidies

By: Manoah kikekon 

Bola Tinubu and Electricity Poles 

The Minister of Power, Adebayo Adelabu, has declared that electricity subsidies must be phased out, warning Nigerians to prepare for increased tariffs as the government moves to address a staggering N4 trillion debt owed to power generation companies (GenCos).  

Adelabu revealed that President Bola Tinubu will meet with GenCos leadership to negotiate a settlement for the massive debt crippling Nigeria’s power sector. Bolaji Tunji, the minister’s Special Adviser on Strategic Communications, confirmed the development in a statement on Sunday.  

The minister assured that the federal government would make an immediate partial payment, with the remaining balance settled via promissory notes within six months. He stressed that without urgent intervention, the power sector risks total collapse.  

Adelabu emphasized the need for full liberalization of the power sector, insisting that Nigerians must pay cost-reflective tariffs for electricity. While the government will maintain targeted subsidies for low-income households, he stated that blanket subsidies are unsustainable.  

“Our economy cannot continue to subsidize electricity for all. Citizens must pay the appropriate price for the energy they consume,” Adelabu declared. He also announced plans to review regulations to reduce operational levies and stabilize the market.  

Representing the GenCos, Col. Sani Bello (Rtd.), Chairman of Mainstream Energy Solutions, warned that liquidity challenges have left power firms unable to service loans or maintain infrastructure. “Without urgent intervention, the entire power ecosystem could collapse,” he said.  

Kola Adesina, Chairman of Egbin Power, described the situation as a national emergency, stressing that reliable electricity is critical for industries, hospitals, and households. Meanwhile, Joy Ogaji, CEO of the Association of Power Generation Companies, highlighted systemic issues such as gas shortages, forex instability, and naira depreciation, which have severely hampered operations.  

 

As the government moves to remove subsidies, Nigerians should expect higher electricity bills in the coming months. The planned meeting between Tinubu and GenCos leadership will be crucial in determining whether a feasible repayment plan can prevent a total sector meltdown.  

For now, the message is clear: Nigerians must prepare to pay more for power as the era of subsidies comes to an end.