The Federal Government has clarified that its immediate priority is to roll out 7 million prepaid smart meters across the country beginning this year, not a 65 per cent increase in electricity tariff.
It also said it is working towards ensuring that the monthly N200 billion it spends on electricity subsidies benefits low-income households rather than benefiting the wealthiest 25 per cent of Nigerians.
In a statement yesterday, the Special Adviser to the President on Energy, Olu Verheijen, dismissed the reports that quoted her as saying that consumers should brace for a 65 per cent electricity tariff increase.
She said: “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 subsidise the difference.
“Also, 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.”
The presidential aide explained that the government’s priority is to enhance the power sector. Verheijen said: “One of the most significant steps in this reform is the Presidential Metering Initiative (PMI), 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.
“Metering will also improve revenue collection across the sector and will attract the investments needed to strengthen power infrastructure.” On electricity subsidies, she said:
“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 said the government is out to settle longstanding debts owed to power generation companies.
She said: “For years, these debts have prevented investments in new infrastructure and hampered efforts to improve electricity supply.
“By 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.”
Verheijen said the government is also implementing measures to reduce costs associated with alternative power generation sources.
She 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.
“The 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’s daily lives.”
“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.”
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