FG denies planned electricity tariff hike, says focus on metering, power sector reforms
Olu Verheijen, the special adviser to the president on energy, said in a statement issued on Monday that her recent comments had been misrepresented.
By Idris Temidayo
The federal government has denied reports of an imminent 65 percent increase in electricity tariffs, clarifying that its immediate focus is on reforms aimed at improving power supply, expanding metering, and ensuring subsidies benefit the most vulnerable Nigerians.
Olu Verheijen, the special adviser to the president on energy, said in a statement issued on Monday that her recent comments had been misrepresented.
“Following the increase in Band A tariffs in 2024, current tariffs now cover about 65 percent of the actual cost of electricity supply, with the government continuing to subsidize the difference. However, there is no planned 65% tariff hike at this time,” Verheijen clarified.
The presidential aide said the federal government is committed to delivering more electricity, reducing outages, and protecting low-income Nigerians.
She added that the government is rolling out seven million prepaid meters nationwide, starting this year, under the presidential metering initiative (PMI).
Verheijen noted that the initiative aims to eliminate estimated billing, ensuring fairness and transparency in electricity charges, improve revenue collection, making the sector more viable for investment, and strengthen power infrastructure, leading to better electricity supply for Nigerians.
She said while the government currently spends over N200 billion monthly on electricity subsidies, it acknowledged that much of this support benefits wealthier households rather than those who need it most.
“To correct this, a targeted subsidy system is being developed to ensure low-income households receive the most support, making electricity more affordable for millions of Nigerians,” she added.
“Through a range of fiscal incentives, including VAT and customs duty waivers, the federal government is working to lower the cost of alternative power sources such as compressed natural gas and liquified petroleum gas.
“The government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s daily lives.
“Every policy is designed with the Nigerian people in mind — eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity.
“These reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians.”
