Olu Verheijen, special adviser to President Bola Tinubu on Energy, has clarified recent media reports suggesting a 65 percent increase in electricity tariffs, stating that current tariffs cover only about 65 percent of the actual cost of supplying electricity, with the Federal Government subsidising the remaining 35percent.
Verheijen emphasised that while the government remains committed to fair electricity pricing and protecting vulnerable Nigerians, the current subsidy system disproportionately benefits the wealthiest 25 percent of the population.
She revealed that N200 billion is spent monthly on electricity subsidies, with the top income earners receiving the largest share.
To address this imbalance, the government is working to transition to a targeted subsidy system that prioritises support for low-income households.
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Verheijen also announced the nationwide rollout of 7 million prepaid meters under the Presidential Metering Initiative, set to begin this year. This initiative aims to eliminate estimated billing and ensure transparency in electricity charges.
In addition, the government is reducing energy costs by removing Value Added Tax (VAT) and Customs Duties on cleaner fuel alternatives like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), providing Nigerians with more affordable power options.
Verheijen reiterated the administration’s commitment to power sector reforms that deliver tangible benefits to Nigerian households and businesses, acknowledging the economic challenges faced by citizens and promising continued efforts to expand access to reliable and affordable electricity.
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