The Federal Government has responded to claims about a drastic increase in electricity tariffs, noting that the discussion is not about a 65% price hike but rather an adjustment aimed at balancing the cost of electricity delivery.
Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, issued a statement clarifying the misunderstanding. She explained that reports suggesting an imminent 65% increase in electricity tariffs were inaccurate.
Verheijen confirmed that while there is an ongoing discussion regarding an increase, she did not state that the tariff would be raised by 65%. She noted that the current tariff rates, which saw a rise in Band A tariffs in 2024, now cover about 65% of the actual cost of electricity. However, the Federal Government continues to subsidize the remaining 35%.
“It has become necessary to clarify media reports suggesting an imminent 65 per cent increase in electricity tariffs.
“This is a misrepresentation of what I actually said in a recent press interview. I highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 per cent of the actual cost of supplying electricity, with the Federal Government continuing to subsidise the difference,” she said.
Verheijen emphasized that the government’s primary focus is to ensure that electricity services are reliable, affordable, and accessible to all Nigerians, especially the most vulnerable segments of the population.
She noted that while tariffs might adjust, the government is committed to providing more electricity, reducing power outages, and protecting low-income households from unnecessary financial burdens.
A significant part of the government’s plan is the implementation of a more targeted subsidy system. Verheijen explained that the Federal Government currently spends over ₦200 billion each month subsidizing electricity costs, but much of this support is benefiting wealthier Nigerians.
The aim is to restructure the subsidy system to ensure that the most vulnerable households receive the most help. This move is expected to make electricity more affordable for millions of Nigerians, particularly low-income families.
“Today, the Federal Government spends over ₦200 billion per month on electricity subsidies, but much of this support benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance. 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 stated.
In response to concerns about unmetered customers, Verheijen assured Nigerians that the government is taking action to address this issue. One of the key initiatives in this regard is the Presidential Metering Initiative, which will roll out 7 million prepaid meters nationwide starting this year.
This initiative aims to end the practice of estimated billing, allowing consumers to pay only for the electricity they actually use and providing greater transparency in electricity charges.
