The government’s stance on the electricity tariff hike has been clarified by Olu Verheijen, Special Adviser to President Bola Tinubu on Energy. She emphasized that recent reports suggesting a 65% increase in tariffs are misleading. Verheijen pointed out that following the adjustment in Band ‘A’ tariffs in 2024, current rates now cover about 65% of the actual electricity supply costs, with the government bridging the remaining gap through subsidies amounting to N200 billion monthly.
She highlighted that these subsidies predominantly benefit the wealthiest 25% of Nigerians rather than the most economically vulnerable. Verheijen emphasized the government’s commitment to ensuring fairer pricing over the long term, with immediate efforts focused on enhancing electricity supply reliability and protecting disadvantaged Nigerians.
Verheijen outlined key government priorities in the power sector, including the Presidential Metering Initiative (PMI), set to deploy 7 million prepaid meters nationwide this year. This initiative aims to eliminate estimated billing, enhance transparency in electricity charges, and boost revenue collection to attract infrastructure investments.
Addressing the issue of outstanding debts owed to power generation companies, she underscored the government’s efforts to clear these debts. By doing so, the government aims to facilitate reinvestment in infrastructure and improve overall electricity service delivery across Nigeria.
Furthermore, Verheijen mentioned fiscal measures such as VAT and customs duty waivers aimed at reducing costs associated with alternative power sources like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
She assured that all reforms in the power sector are designed with the welfare of Nigerians in mind, aiming to eliminate unfair billing practices, ensure targeted subsidy distribution, and create conditions for stable and affordable electricity. These reforms, according to Verheijen, lay the groundwork for improved service delivery, expanded electricity access, and economic prosperity nationwide.
