Presidency Refutes Claims of 65% Electricity Tariff Hike, Assures No Immediate Increase

The Federal Government has denied reports suggesting an imminent 65% increase in electricity tariffs, stating that its focus remains on improving power supply, ensuring targeted subsidies, and expanding metering nationwide.

Olu Arowolo Verheijen, Special Adviser to the President on Energy, made this clarification in a statement posted on her LinkedIn page on Monday.

She stated, “It has become necessary to clarify media reports suggesting an imminent 65 per cent increase in electricity tariffs. This is a misrepresentation of what I actually said in a recent press interview. 

I highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 per cent of the actual cost of supplying electricity, with the Federal Government continuing to subsidize the difference.” 

Verheijen emphasized that while the government is committed to ensuring fairer pricing over the long term, its immediate focus is on increasing electricity supply, reducing outages, and protecting vulnerable Nigerians.

“Today, the Federal Government spends over N200 billion per month on electricity subsidies, but much of this support benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance. 

‘’To address this, the Federal Government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families,” she added. 

One of the significant reforms in the power sector is the Presidential Metering Initiative, which aims to roll out 7 million prepaid meters nationwide starting this year.

She stated, “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.” 

According to Verheijen, this initiative will eliminate estimated billing, provide transparency in electricity charges, and restore consumer confidence.

“Metering will also improve revenue collection across the sector and attract the investments needed to strengthen Nigeria’s power infrastructure,” she noted. 

She further noted “To address this, the Federal government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families.” 

In her statement, she said, in addition to addressing the tariff concerns, the Federal Government will be implementing fiscal incentives, including VAT and Customs Duty Waivers, to lower the cost of alternative power sources such as Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).

These initiatives, she notes, align with the government’s commitment to ensuring that power sector reforms translate into tangible benefits for Nigerians.

“Every policy is designed with the Nigerian people in mind eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity,” Verheijen reiterated.