The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has refuted claims of an impending 65% increase in electricity tariffs, clarifying recent media reports on the matter.
Verheijen in a statement via her verified X handle on Monday stated that the current Band A tariffs cover approximately 65% of the actual cost of electricity supply, with the Federal Government subsidising the remaining amount.
“The Federal Government is committed to fair electricity pricing, protecting vulnerable Nigerians, and expanding access to reliable power,” she said. She further revealed that the government currently spends N200 billion monthly on electricity subsidies but noted that “the wealthiest 25% of Nigerians receive the biggest share.”
“To address this, we are working towards transitioning to a targeted subsidy system that ensures that low-income households receive the most support,” Verheijen added.
She also announced plans for a nationwide rollout of seven million prepaid meters under the Presidential Metering Initiative, beginning 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,” she explained.
Beyond electricity pricing, Verheijen highlighted measures aimed at lowering energy costs, particularly through tax relief on cleaner fuel alternatives.
“We’re lowering energy costs by removing VAT and Customs Duties on cleaner fuel alternatives like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)—offering Nigerians cheaper options for power,” she stated.
She reassured Nigerians that the government remains focused on power sector reforms, saying, “We understand the economic challenges facing Nigerians and remain committed to ensuring that power sector reforms deliver real benefits to Nigerian homes and businesses.”
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