The Nigerian Presidency has issued a statement to clarify recent reports suggesting a 65% increase in electricity tariffs. According to the government, these claims misrepresent its stance on the issue. Olu Verheijen, the Special Adviser to President Bola Tinubu on Energy, emphasized that the government’s primary objective is to stabilize the power sector while ensuring vulnerable citizens are protected from unnecessary financial strain.
Verheijen addressed the confusion in a statement released on Monday, explaining that her earlier comments had been misinterpreted. She clarified that the current electricity tariffs, following a tariff increase for Band A consumers in 2024, now cover about 65% of the actual cost of electricity supply, with the government continuing to subsidize the remaining 35%.
“I highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 percent of the actual cost of supplying electricity, with the Federal government continuing to subsidize the difference,” Verheijen stated. Her remarks sought to correct the misconception that the government had introduced a significant tariff hike.
Verheijen also emphasized that while the government is committed to ensuring fairer electricity pricing in the long term, its immediate focus is on addressing critical challenges in the power sector. “The immediate focus is on taking decisive action to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians,” she explained.
One of the key initiatives in the government’s power sector reform is the Presidential Metering Initiative (PMI), which aims to deploy 7 million prepaid meters nationwide. This initiative, set to begin this year, is designed to eliminate estimated billing, providing consumers with more transparency and confidence in their electricity charges.
“One of the most significant steps in this reform is the Presidential Metering Initiative. This will finally put an end to the practice of estimated billing,” Verheijen said, stressing the importance of metering in ensuring fairness and transparency in billing.
In addition to the metering initiative, Verheijen highlighted the considerable financial commitment the government is making towards electricity subsidies. She noted that the Federal Government spends over ₦200 billion per month on these subsidies, but pointed out that much of this support benefits the wealthiest 25% of Nigerians, rather than those who truly need assistance.
To address this issue, Verheijen announced that the government is working towards a more targeted subsidy system. The aim is to ensure that low-income households receive the most support, improving the equity and effectiveness of the subsidy program.
