The Federal Government has swiftly addressed recent media reports suggesting a 65% increase in electricity tariffs, labeling the claims as a misrepresentation of remarks by Olu Arowolo Verheijen, the Special Adviser to the President on Energy.
In a statement posted on her LinkedIn page, Verheijen clarified that while the 2024 tariff increase for Band A customers now reflects approximately 65% of the actual cost of electricity supply, the government is still subsidizing the remaining portion. She emphasized that the administration’s immediate priority is not to raise electricity tariffs but to enhance power supply, minimize outages, and provide targeted support to vulnerable Nigerians.
Verheijen further highlighted that the government is currently spending over N200 billion monthly on electricity subsidies, a significant portion of which disproportionately benefits the wealthiest 25% of Nigerians. In response, the government plans to implement a targeted subsidy system aimed at making electricity more affordable for low-income households, ensuring that the majority of citizens benefit from the support.
The Presidential Metering Initiative (PMI), a cornerstone of the power sector reform, was also outlined by Verheijen. The initiative, which will deploy 7 million prepaid meters across the country starting this year, aims to eliminate estimated billing and promote greater transparency in electricity charges. This nationwide effort is expected to improve revenue collection and attract much-needed investments to strengthen Nigeria’s power infrastructure.
Additionally, the government is introducing fiscal incentives such as VAT and Customs Duty Waivers to reduce the cost of alternative energy sources like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), further diversifying energy options for Nigerians.
Verheijen reiterated that these reforms are designed to end unfair billing practices, provide equitable subsidies, and create conditions for a stable and affordable electricity supply. The government’s focus remains on delivering a reliable power system and laying a solid foundation for sustainable energy reforms.