A reported proposal by the Federal Government to increase electricity tariffs in phases has triggered sharp criticisms and public concern across Nigeria, according to reports from Dailypost. While the presidency dismissed reports of a planned immediate hike over the weekend, consumer advocates and industry experts argue that the administration lacks the moral justification to raise tariffs given the country’s persistent power supply challenges.
Nigeria Faces Power Outcry Amid Proposed Tariff Hikes and Grid Failures
The brewing tension follows previous adjustments, such as an almost 300 percent electricity tariff increase implemented in April 2024 for Band A customers who were supposed to receive at least 20 hours of daily electricity. Consumers state that supply remains unreliable even for those in Band A, fueling ongoing frustration with the administration of President Bola Ahmed Tinubu and Power Minister Joseph Tegbe.
During discussions in Lagos at Asharami Square 3.0, the Special Adviser to the President on Power Infrastructure, Sadiq Wanka, confirmed that official government policy includes a transition to cost-reflective tariffs across the board alongside the phased removal of electricity subsidies, as reported by Punch Newspapers. Wanka noted that vulnerable households would be protected through targeted support, such as the proposed Power Consumer Assistance Fund, with the transition expected to occur over the coming year or so.
Grid Instability, Massive Capacity Waste, and Infrastructure Deficits
Nigeria’s electricity sector continues to suffer from severe structural bottlenecks, most notably a fragile national transmission network. According to the Association of Power Generation Companies (APGC), approximately 85 million Nigerians live without electricity access while thousands of megawatts of generated power are wasted daily because the grid cannot evacuate it, as detailed by THISDAYLIVE.
Dr. Joy Agaji, Chief Executive Officer of APGC, stated that Nigeria’s crisis is a transmission failure rather than a generation failure. While the country has an installed capacity of over 15,500 megawatts (MW), the grid can only wheel around 4,500 MW. Stranded or unutilised generation capacity consistently runs between 2,500 MW and 4,000 MW. In December 2025, generation checks showed that 2,275.67 MW of available power sat wasted and undelivered—representing 33.6 percent of available generation and marking the highest level in five years.
The fragility of the network has led to frequent system collapses. APGC records indicate the national grid collapsed 564 times between 2000 and 2022. The instability extended into early 2026, with the country suffering three nationwide blackouts in 30 days during January. On January 27, 2026, grid output plummeted from 3,825 MW at 10 a.m. to just 39 MW by 11 a.m., causing 99 percent of the country’s electricity to vanish within a single hour as every distribution zone simultaneously dropped to zero.
Financial Pressures and Massive Sector Debts
The financial health of the Nigerian electricity value chain remains under severe strain from unpaid invoices, billing gaps, and collection inefficiencies.
Multi-Billion Dollar Investment Requirements Through 2045
To overcome these structural roadblocks and stabilize the grid, Nigeria faces massive long-term capital requirements. According to Tribune Online, the country requires an estimated $228 billion in electricity investments between 2026 and 2045 to meet future energy demands and achieve universal access.
Addressing stakeholders in Lagos, Sadiq Wanka noted that Nigeria requires approximately $12 billion in electricity investments annually through 2045, a stark contrast to the roughly $1 billion currently invested each year from public and private sources. Wanka broke down the necessary capital allocation through 2045 as follows:
* Generation sub-sector: Approximately $6.1 billion required. * Transmission network: Around $2 billion required. * Distribution sub-sector stabilization: Between $2 billion and $4 billion required.
Wanka highlighted that recent legislative measures, such as the Electricity Act 2023, are attempting to liberalize the market by strengthening state participation, transferring regulatory oversight to subnational regulators in 16 states, and allowing private sector involvement in transmission financing.
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