Electricity tariff increase yields extra N700bn revenue – Power minister
By Tunde Opalana
Implementation of new electricity tariffs regime by the Federal Government has yielded over N700 billion into the government covers in 2024.
The Minister of Power, Mr. Adebayo Adelabu, who disclosed this during the 6th edition of the 2025 Ministerial Press Briefing Series held on Thursday in Abuja said the additional revenue represents a 70% year-on-year increase compared to the collections recorded in 2023.
Adelabu said “it is evident that, due to our transformative tariff reforms, the electricity market generated additional N700 billion revenue in 2024, reflecting a 70 per cent increase from what was collected in 2023.
“This resulted from the cost-reflective tariff adjustment for Band A customers. This growth in market revenue is unprecedented, as the highest growth previously achieved was 20 per cent.”
However, contrary to outcry of adverse economic effects of the new tarrif on electricity consumers, the minister claimed that it helped reduce the government’s tariff subsidy burden.
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“This positively impacts the reduction of the government- subsidised tariff shortfall by 35 per cent, decreasing it from N3 trillion to N1.9 trillion,” he said
Adelabu gave kudos to policy direction of the power ministry in line with the Renewed Hope agenda of President Bola Tinubu.
He categorically stated that “in line with the Electricity Act of 2023, the Federal Ministry of Power has developed the National Integrated Electricity Policy (NIEP) to provide a long-term roadmap for reform and modernization.
He added that the NIEP, which has been submitted to the Federal Executive Council for approval, will serve as a guiding framework for all power sector actors—including investors, operators, regulators, and government agencies.
The policy, he said, is built on a data-driven and evidence-based approach to planning and operations, ensuring transparency, accountability, and improved investor confidence.
The minister projected integrated of several households and communities who currently lack access to electricity into national power plan.
He said this be pushed by Nigeria’s endorsement of the Nigerian Energy Compact, which was signed in January during a summit held in Tanzania.
“The Compact is a flagship initiative under the leadership of the World Bank and the African Development Bank (AfDB), aimed at significantly scaling up access to electricity.
“The target of M300 is to extend energy access to an additional 300 million Africans by 2030 out of the 600 million currently lacking access.
“The Compact also aims to promote clean cooking solutions and improve Nigeria’s overall energy mix, with a strong emphasis on renewables and sustainability,” Adelabu said.
