Federal Govt Targets Metering, Infrastructure Audit To Close Power Sector Tariff Gap

The federal government has said it is targeting wider deployment of electricity meters rather than an outright withdrawal of subsidies, to close the power sector tariff shortfall and tackle a legacy debt now put at N3.3 trillion.

The debt which The minister of Power, Joseph Tegbe, who made this known, said legacy debt put at about N3.3 trillion after careful reconciliation process, was  partly caused by technical problems associated with aging infrastructure and governance issues, and is being redeemed through bond issuance through which N501 billion has been paid and another N700,000 set to be repaid in the course of the year.

Tegbe, during a media chat in Lagos on Friday, said a lot of work is being carried out to reset the power sector and ensure the sector delivers on its mandate of energizing the economy.

He described what is raising the debt as ‘Tariff Shortfall” which would be addressed through strengthening of aged infrastructure and improved governance structure.

According to him, government would continue to provide buffer for vulnerable Nigerians as electricity supply is partly social service which the present administration considers as dividend of democracy.

The minister explained that what is regarded as subsidy is the shortfall in the tariff system but would be addressed when consumers are metered and technical issues addressed with replacement of obsolete equipment.

“Indeed, the Federal Government will continue to examine additional mechanisms for protecting vulnerable consumers whilst simultaneously improving the financial sustainability of the market.

Resetting the sector is not about buzz words. It is about execution, discipline, coordination, measurable outcomes. We will measure our outcomes by improvements experienced in the daily lives of Nigerians.

“Our ambition is clear. Reliable electricity that powers our homes. Competitive electricity that powers our industries. Sustainable electricity that attracts investment.

Inclusive electricity that reaches every Nigerian.

The administration of Pesident Bola Ahmed Tinubu, he said is laying a strong foundation for a sustainable power sector and therefore Government will continue to examine additional mechanisms for protecting vulnerable consumers whilst simultaneously improving the financial sustainability of the market.

Speaking on the way forward, Tegbe, said the ministry will commence with Technical Audit of the National Transmission Network.

This will involve comprehensive technical audit of the transmission segment of the electricity network.

The audit will identify ageing assets, overloaded substations, weak transmission

corridors, protection failures, system bottlenecks and operational vulnerabilities.

This exercise will provide the factual basis for prioritising investments, reducing

system failures, improving planning and ensuring that every naira invested delivers

measurable value.

Also, government will ensure harmonisation of Federal and State Electricity Regulation.

He said the Electricity Act has created tremendous opportunities but the transition inevitably creates areas requiring clarification and the Ministry shall therefore work closely with NERC and State Electricity Regulatory Commissions to resolve jurisdictional disputes, establish regulatory harmony and ensure that decentralisation produces certainty rather than confusion.

Also, on the table is Grid Stabilisation Programme which he said is the foundation of reliable electricity.

“Consequently, we shall immediately commence strategic investments in three

critical transmission corridors: Lagos Corridor; Enugu–Port Harcourt; and Abuja–Kaduna–Kano.” Tegbe added.

On the Sector Liquidity and Sustainability, he said no electricity market can survive if participants are unable to recover legitimate revenues, thus the ministry shall focus on reducing technical and commercial losses while modernising critical transmission infrastructure.

This intervention complements the Presidential Metering Initiative, which is already addressing collection losses through accelerated deployment of smart meters.

He further elaborated on plans to embark on Strategic Asset Centralisation.

Under the plan, the ministry shall pursue strategic asset centralisation and optimisation, linking under-utilised assets with targeted industrial clusters, manufacturing hubs and captive economic corridors.

He spoke about the Super Grid Programme which represents medium and long-term strategy for expanding Nigeria’s transmission backbone along critical corridors.

This programme will reinforce the national grid, improve redundancy, enable higher power transfers across regions and create dedicated electricity corridors capable of supporting future industrial growth.

“In the next few months,we plan to achieve visible improvements in availability.

Within the next two to three  years, Nigerians should experience a stronger grid, reduced technical losses, improved market discipline, greater investor confidence, expanded electricity access and significantly higher operational capacity.” he assured.