WorldStage Newsonline– Special Adviser to the President on Energy, Mrs Olu Verheijen has clarified her statement that with 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 of 35%.
A statement signed by Verheijen on Monday clarified reports suggesting an imminent 65 per cent increase in electricity tariffs, saying the report was a misrepresentation of what she actually said in a recent press interview.
According to her, the government was committed to ensuring fairer pricing over the long term.
She stated that the immediate focus was on taking decisive action to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.
The presidential aide said in line with these, the federal government’s power sector priorities included the Presidential Metering Initiative (PMI), which she said was aimed at accelerating the nationwide rollout of 7 million prepaid meters, starting this year.
“This will finally put an end to the practice of estimated billing, giving consumers confidence in what they are paying for and ensuring transparency in electricity charges.
“Metering will also improve revenue collection across the sector and will attract the investments needed to strengthen Nigeria’s power infrastructure,” said Verheijen.
She said another priority of the federal government was Targeted Electricity Subsidies.
“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 explained.
She said the government was also prioritising Settlement of Legacy Power Debt, which she said was one of the major roadblocks to improved service.
“For years, these debts have prevented investments in new infrastructure and hampered efforts to improve electricity supply.
“By clearing these outstanding obligations, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians,” stated Verheijen.
Similarly, she said the government was prioritising reducing costs for alternative power generation.
“Through a range of fiscal incentives, including VAT and Customs Duty Waivers, the federal government is working to lower the cost of alternative power sources such as Compressed Natural Gas and Liquified Petroleum Gas.
“The government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s daily lives.
“Every policy is designed with the Nigerian people in mind — eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity,” she said.
She said these reforms were laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians.
