Government Can No Longer Cover Electricity Subsidies, Says Power Minister

The Minister of Power, Joseph Tegbe, has stated that the Federal Government can no longer continue to cover electricity tariff shortfalls while working to expand power supply to all Nigerians across the country.

According to a report by Daily Post on Monday, October 12, 2026, Tegbe made this known while discussing the financial challenges facing Nigeria’s electricity sector. He explained that the current subsidy system was no longer sustainable because of the significant difference between the cost of generating electricity and the tariffs paid by consumers.

The minister identified poor revenue collection, inadequate metering infrastructure, and substantial outstanding debts owed to power generation companies as some of the major problems affecting the sector. He noted that these challenges have placed considerable pressure on the electricity market and made it increasingly difficult for the government to continue financing the existing subsidy arrangement.

As part of efforts to address the financial difficulties, Tegbe revealed that the Federal Government was considering moving away from the Nigerian Bulk Electricity Trading framework towards a system that allows electricity suppliers and consumers to enter into direct bilateral agreements.

According to him, the proposed transition would encourage better payment practices among market participants and strengthen the financial stability of Nigeria’s electricity industry in the long run.

Speaking on the country’s metering challenges, the minister disclosed that Nigeria still has a metering deficit of approximately 40 per cent. However, he noted that more than 700,000 electricity meters had been installed across the country within the preceding six months.

Tegbe further revealed that the Federal Government intends to install an additional 7.5 million meters nationwide over the next two to three years. The initiative is expected to improve electricity billing, strengthen revenue collection, and address some of the financial challenges affecting the power sector.

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