The Federal Government has denied reports of a planned 65 per cent increase in electricity tariffs, clarifying that recent media interpretations were inaccurate.
Special Adviser to Tinubu on Energy, Olu Arowolo Verheijen, dismissed the claim, stating that the reports misrepresented her comments in a recent press interview.
Bloomberg had earlier quoted Verheijen as saying that Nigeria’s power prices need to rise by about two-thirds to reflect the actual cost of supply.
However, in a statement posted on her X account, she clarified that following the 2024 increase in B and A tariff bands, current electricity tariffs now cover approximately 65 per cent of supply costs, with the federal government subsidising the remaining amount.
She emphasised that while the government aims to ensure fairer electricity pricing over time, its immediate priority is to improve power supply, reduce outages, and protect vulnerable Nigerians.
She stated, “In line with these, the Federal government’s power sector priorities include: Presidential Metering Initiative (PMI): One of the most significant steps in this reform is the Presidential Metering Initiative, which is accelerating the nationwide rollout of 7 million prepaid metres, starting this year.”
Verheijen highlighted the Presidential Metering Initiative (PMI) as a key reform, aimed at rolling out seven million prepaid meters nationwide, beginning this year. She said the initiative would eliminate estimated billing, enhance transparency, and attract investment in the power sector.
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She also disclosed that the federal government currently spends over N200 billion monthly on electricity subsidies. However, she noted that much of this support benefits the wealthiest 25 per cent of Nigerians instead of those in need.
“To address this, the federal government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families,” she added.
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