Olu Verheijen, Special Adviser on Energy to President Bola Ahmed Tinubu, has addressed public concerns over reports of an imminent 65 percent electricity tariff hike in Nigeria.
Taking to X on Monday, Verheijen clarified her earlier statement, emphasizing that the federal government is still subsidizing electricity at a cost of ₦200 billion per month. She also noted that the wealthiest 25 percent of Nigerians benefit the most from these subsidies.
“I would like to clarify media reports suggesting an imminent 65 percent increase in electricity tariffs.
“What I actually said: Following the increase in Band A tariffs, Current tariffs now cover about 65 percent of the actual cost of supplying electricity, with the Federal Government continuing to subsidize the difference.
“The Federal Government is committed to fair electricity pricing, protecting vulnerable Nigerians, and expanding access to reliable power.
“Right now, N200 billion per month is spent on electricity subsidies but the wealthiest 25 percent of Nigerians receive the biggest share. To address this, we are working towards transitioning to a targeted subsidy system that ensures that low-income households receive the most support.
“Additionally, we are commencing the nationwide rollout of 7 million prepaid meters, under the Presidential Metering Initiative, beginning this year. This will finally put an end to the practice of estimated billing, giving consumers confidence in what they are paying for and ensuring transparency in electricity charges.
“Beyond that, we’re lowering energy costs by removing VAT and Customs Duties on cleaner fuel alternatives like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)—offering Nigerians cheaper options for power.
“We understand the economic challenges facing Nigerians and remain committed to ensuring that power sector reforms deliver real benefits to Nigerian homes and businesses”, she stated.