The Federal Government has addressed recent media reports claiming an imminent 65% hike in electricity tariff, clarifying that these reports misrepresent comments made by Olu Arowolo Verheijen, the special adviser to the President on Energy.
In a statement posted on her LinkedIn page, Verheijen clarified that the current tariffs, following the 2024 increase in Band A tariffs, now cover about 65% of the actual cost of supplying electricity, with the government continuing to subsidise the remaining amount.
She stressed that the government’s immediate focus is not on raising electricity tariff, but on improving power supply, reducing outages, and providing targeted support to vulnerable Nigerians.
“Today, the Federal Government spends over N200 billion per month on electricity subsidies,” Verheijen explained. However, she pointed out that much of this support disproportionately benefits the wealthiest 25% of Nigerians.
To address this, the government is introducing a targeted subsidy system to ensure that low-income households receive the most benefits, making electricity more affordable for the majority.
A key element of the power sector reform is the Presidential Metering Initiative (PMI), which will roll out 7 million prepaid meters across the country starting this year.
Verheijen noted that this initiative aims to end estimated billing, ensuring consumers pay for what they use, and bringing greater transparency to electricity charges. She also pointed out that the nationwide metering drive will improve revenue collection and attract the necessary investments to strengthen Nigeria’s power infrastructure.
In addition to these, the government is introducing fiscal incentives such as VAT and Customs Duty Waivers to lower the cost of alternative power sources like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), further diversifying energy options for Nigerians.
These reforms are part of the government’s initiative to ensure that power sector changes lead to concrete improvements in the daily lives of citizens.
Verheijen reiterated that the government’s policies are designed to eliminate unfair billing practices, provide equitable subsidies, and ultimately create the conditions for stable, affordable electricity.
The focus, she stressed, remains on delivering a more reliable power supply and laying a good foundation for sustainable energy reforms.
