Presidency Refutes Claims of he Nigerian Presidency has dismissed reports suggesting an imminent 65% increase in electricity tariffs, clarifying that no such decision has been made.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, made this known on Monday, February 3, stating that the Federal Government remains committed to stabilizing the power sector while protecting vulnerable citizens from excessive financial burdens.
“It has become necessary to clarify media reports suggesting an imminent 65 percent increase in electricity tariffs. This is a misrepresentation of what I actually said in a recent press interview,” Verheijen stated.
She explained that, following the recent adjustment in Band A tariffs, electricity charges now cover about 65% of the actual supply cost, with the government continuing to subsidize the remainder.
Verheijen emphasized that while the government is working toward a fairer pricing system in the long term, its immediate focus is on improving electricity supply, reducing outages, and ensuring that the poorest Nigerians receive necessary protections.
One of the key initiatives under this reform agenda is the Presidential Metering Initiative (PMI), which aims to roll out seven million prepaid meters nationwide in 2024.
She noted that this effort is expected to eliminate estimated billing, a long-standing issue that has led to arbitrary electricity charges for Nigerian households.
“The rollout of smart meters will enhance billing transparency, give consumers confidence in what they are paying for, and improve revenue collection across the power sector,” Verheijen said, adding that improved metering will also attract investments needed to strengthen Nigeria’s power infrastructure.
In addition to metering, the government is shifting toward targeted electricity subsidies, ensuring that financial support is directed toward low-income households instead of wealthier Nigerians.
Currently, the government spends over N200 billion monthly on electricity subsidies, a significant portion of which benefits the wealthiest 25% of Nigerians.