*Olu Arowolo Verheijen, Special Adviser to the President on Energy, says some recent media reports suggesting an imminent 鈥�65 percent increase in electricity tariffs鈥� are 鈥榓 misrepresentation of what I actually said in a recent press interview鈥�, stating the rollout of smart meters starting 2025 will end estimated billing for seven million Nigerian households

Isola Moses | 绿帽献妻

The Federal Government has clarified reports in some sections of the media suggesting an imminent 鈥�65 percent increase in electricity tariffs鈥�.

Olu Arowolo Verheijen, Special Adviser to the President on Energy, in a statement Monday, February 3, 2025, said the reports reflected 鈥渁 misrepresentation of what I actually said in a recent press interview.鈥�

The Presidential aide stated: 鈥淚 highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 percent of the actual cost of supplying electricity, with the Federal Government continuing to subsidise the difference.

鈥淎lso, while the government is, indeed, committed to ensuring fairer pricing over the long term, the immediate focus is on taking decisive action to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.鈥�

According to her, in line with these measures, the country鈥檚 power sector priorities include the Presidential Metering Initiative (PMI).

Verheijen described this as one of the most significant steps in this reform is the Presidential Metering Initiative, which is accelerating the nationwide rollout of 7 million prepaid meters, starting 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 said.

The Special Adviser as well explained that metering would also improve revenue collection across the sector and will attract the investments needed to strengthen Nigeria鈥檚 power infrastructure.

Verheijen said the second is targeted electricity subsidies.

According to her, the Federal government spends over N200 billion per month on electricity subsidies, but much of this support benefits the wealthiest 25 percent of Nigerians rather than those who truly need assistance.

The Special Adviser stated: 鈥淭o address this, the Federal government is working towards a targeted subsidy system to ensure that low-income households receive the most support.

鈥淭his approach will make electricity more affordable and accessible for millions of hardworking families.鈥�

She equally noted the settlement of legacy power debt in the sector, assuring that the Federal Government is addressing one of the major roadblocks to improved service, the mounting debts owed to power generation companies.

鈥淔or years, these debts have prevented investments in new infrastructure and hampered efforts to improve electricity supply.

鈥淏y clearing these outstanding obligations, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians,鈥� she stated.

On reducing costs for alternative power generation, Verheijen said through a range of fiscal incentives, including VAT and Customs Duty Waivers, the Federal Government is working to lower the cost of alternative power sources such as Compressed Natural Gas and Liquified Petroleum Gas.

She also averred: 鈥淭he government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people鈥檚 daily lives.

鈥淭hese reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians.鈥�

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