Pat Stevens/
The Federal Government has dismissed reports suggesting an imminent 65% increase in electricity tariffs, describing them as a misrepresentation of recent comments by the Special Adviser to the President on Energy, Olu Verheijen.
In a statement issued on Monday, Verheijen clarified that her remarks during a recent interview were taken out of context.
She explained that current electricity tariffs cover approximately 65% of the actual cost of supply following the Band A tariff adjustment in 2024. “The Federal Government continues to subsidise the difference,” she noted, refuting claims of a planned tariff hike.
Rather than focusing on increasing electricity tariffs, Verheijen emphasised that the government’s immediate priorities lie in reforming the power sector to deliver reliable electricity, reduce outages, and protect the most vulnerable Nigerians.
Among the cornerstone reforms is the Presidential Metering Initiative, which will roll out seven million prepaid smart meters across the country starting in 2025. This initiative aims to end the controversial practice of estimated billing, enhance transparency, improve revenue collection, and attract investment into the nation’s power infrastructure.
The government is also revising its approach to electricity subsidies. Currently, over ₦200 billion is spent monthly on subsidies, much of which benefits wealthier Nigerians rather than those in dire need. The Federal Government plans to implement a targeted subsidy system to ensure that low-income households receive more support, making electricity more affordable for the most vulnerable citizens.
Additionally, the government is taking steps to address the legacy debts owed to power generation companies, which have hindered infrastructure investment and progress in the power sector for years.
By settling these obligations, the administration hopes to restore confidence in the sector, enabling reinvestments that will drive better service delivery and a stable electricity supply for all Nigerians.
In an effort to ease the economic burden on citizens, the government is introducing fiscal incentives, including VAT and Customs Duty Waivers, to reduce the costs of alternative energy sources such as Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG). These measures are designed to provide more affordable options for alternative power generation.
Verheijen reiterated that the Federal Government’s approach to power sector reforms is centered on improving the quality of life for Nigerians.
“We are eliminating unfair estimated billing, ensuring subsidies benefit the right people, and creating a stable, affordable electricity framework for all,” she stated.
These reforms, she added, are intended to lay the foundation for expanded access to electricity, better service delivery, and economic growth while ensuring that vulnerable Nigerians are protected throughout the process.
0