The presidency has refuted reports suggesting a 65% increase in electricity tariffs. On Monday, February 3, the Special Adviser to President Tinubu on Energy, Verheijen, clarified that the Federal Government remains committed to stabilizing the power sector and shielding vulnerable citizens from excessive cost burdens.
Verheijen called out the media claims, describing them as a misinterpretation of her recent statements. She explained that the current electricity tariffs now cover about 65% of the actual cost of supply after the increase in Band A tariffs in 2024, with the government continuing to subsidize the remaining gap.
While the government aims to ensure fairer pricing in the long term, Verheijen emphasized that the immediate focus is on improving electricity supply, reducing outages, and protecting the most vulnerable citizens.
The government’s reform strategy for the power sector includes key priorities such as metering, targeted subsidies, debt resolution, and alternative power generation.
One major initiative is the Presidential Metering Initiative (PMI), which will see the distribution of 7 million prepaid meters nationwide starting this year. This initiative aims to eliminate the controversial practice of estimated billing, ensuring households are charged accurately for electricity usage.
The rollout of smart meters is expected to improve billing transparency, boost consumer confidence, and enhance revenue collection within the sector. Verheijen noted that metering would also attract investments needed to strengthen Nigeria’s power infrastructure.
Additionally, the government is shifting to targeted electricity subsidies, ensuring that support is directed to low-income households, rather than benefiting wealthier Nigerians. Currently, over N200 billion is spent monthly on electricity subsidies, with much of it benefiting the wealthiest 25% of the population.
