- Special Adviser Olu Verheijen refutes claims of a 65% electricity tariff increase, stating current rates cover about 65% of supply costs
- The government aims to improve electricity supply and reduce outages while implementing a targeted subsidy system for low-income households
The Special Adviser to the President on Energy, Olu Arowolo Verheijen, has refuted claims that the federal government plans to increase electricity tariffs by 65%.
In a statement on her X account, Verheijen clarified that recent media reports misrepresented her comments in a press interview.
Bloomberg quoted her saying that electricity prices in Nigeria need to rise by two-thirds to reflect supply costs. However, she explained that after the 2024 tariff adjustments for Bands A and B, current rates now cover about 65% of the actual cost, with the government continuing to subsidize the rest.
She emphasized that while fairer pricing is a long-term goal, the government’s immediate priority is increasing electricity supply, reducing outages, and protecting vulnerable Nigerians.
Verheijen highlighted key government initiatives, including the Presidential Metering Initiative (PMI). This program aims to roll out 7 million prepaid meters nationwide, ensuring accurate billing, increasing transparency, and boosting revenue collection.
She also revealed that the government spends over N200 billion monthly on electricity subsidies. However, much of this support benefits the wealthiest 25% rather than those in real need.
The government is working on a targeted subsidy system to address this issue. This approach will ensure low-income households receive more assistance, making electricity more affordable for millions of families.
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