The Nigerian Presidency has dismissed reports suggesting an impending 65% increase in electricity tariffs, clarifying that such claims misrepresent the government’s position.
Olu Arowolo Verheijen, Special Adviser to President Bola Tinubu on Energy, addressed the issue in a statement on Monday.
She emphasized that the Federal Government’s priority remains stabilizing the power sector while shielding vulnerable citizens from excessive financial burdens.
Verheijen explained that her earlier remarks had been misconstrued.
She clarified that current electricity tariffs cover approximately 65% of the actual cost of supply, a development following the 2024 adjustment of Band A tariffs.
The government continues to subsidize the remaining costs to ease the impact on consumers.
“It’s important to correct the narrative circulating in the media regarding an alleged imminent 65% tariff increase. That is not accurate,” Verheijen stated.
“While the government aims for fairer pricing in the long term, our immediate focus is on enhancing electricity supply, reducing outages, and safeguarding Nigeria’s most vulnerable populations.”
As part of ongoing reforms, the government has outlined key initiatives targeting improvements in metering, subsidy management, debt resolution, and alternative energy generation.
One of the central pillars of these reforms is the Presidential Metering Initiative (PMI), which aims to deploy seven million prepaid meters nationwide starting this year.
This initiative seeks to eliminate estimated billing, a long-standing issue that has resulted in arbitrary charges for many Nigerian households.
“The nationwide rollout of smart meters will bring greater transparency to electricity billing, boost consumer confidence, and improve revenue collection across the sector,” Verheijen noted.
“Accurate metering will also attract the necessary investments to strengthen Nigeria’s power infrastructure.”
In addition, the government plans to shift towards a targeted subsidy framework to ensure that financial support reaches low-income households instead of disproportionately benefiting wealthier citizens.
Verheijen revealed that the government currently spends over ₦200 billion monthly on electricity subsidies, with a significant portion inadvertently supporting Nigeria’s wealthiest 25%.
“To address this imbalance, we are working on a more targeted subsidy system designed to prioritize assistance for low-income Nigerians,” she added.