Nigerian Govt debunks report of 65% electricity tariff hike

On Monday, the Nigerian government dismissed reports of an imminent 65 per cent increase in electricity tariffs in Nigeria.

Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, in a statement on Monday, made this known in reaction to reports alleging that the federal government is suggesting an imminent 65 per cent increase in electricity tariffs.

In her reaction on Monday, Ms Verheijen said the report is a misrepresentation of what she said in a recent press interview.

“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,” Ms Verheijen said.

She said 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.

She outlined the federal government’s power sector priorities, which include the Presidential Metering Initiative (PMI), targeted electricity subsidies, settlement of legacy power debt, and reduction of costs for alternative power generation.

She noted that one of the most significant reforms taken is the Presidential Metering Initiative, which is accelerating the nationwide rollout of 7 million prepaid meters starting this year.

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This, she said, 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 Nigeria’s power infrastructure.”

According to her, 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, Ms Verheijen said 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. Furthermore, the federal government is addressing one of the major roadblocks to improved service, the mounting debts owed to power generation companies.

“For years, these debts have prevented investments in new infrastructure and hampered efforts to improve electricity supply,” she added.

She said the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians by clearing these outstanding obligations.

Fiscal incentive

She said the federal government is working to lower the cost of alternative power sources such as Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG) through a range of fiscal incentives, including VAT and Customs Duty Waivers.

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She explained that 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.

“These reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians,” she added.