FG debunks 65% electricity tariff hike claim, reaffirms commitment to power sector reforms

...Spends N200bn on electricity subsidy monthly

By Austine Agbo Emmanuel, Kaduna

The Federal Government has dismissed reports suggesting an imminent 65% increase in electricity tariffs, clarifying that the current tariff structure only covers about 65% of the actual cost of power supply, with the government subsidising the balance.

The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen made this known in a statement, emphasising that the administration remains committed to ensuring fair electricity pricing while protecting vulnerable Nigerians.

She disclosed that the government spends over N200 billion monthly on electricity subsidies, but much of this support currently benefits wealthier households.

To address this, Verheijen said the government is working towards a targeted subsidy system that prioritises low-income families.

“In the long term, our focus is on fairer pricing and ensuring more electricity supply with fewer outages, particularly for those who need it most,” Olu stated.

As part of broader power sector reforms, she announced the launch of the Presidential Metering Initiative (PMI), which aims to deploy seven million prepaid meters nationwide.

The rollout, beginning this year, is expected to eliminate estimated billing, improve revenue collection, and attract necessary investments into the sector.

Additionally, the government is addressing outstanding debts owed to power generation companies, a move aimed at strengthening infrastructure and enhancing service delivery.

Verheijen further highlighted fiscal incentives, including VAT and Customs Duty Waivers on Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), to lower energy costs and provide Nigerians with more affordable power alternatives.

“The administration understands the economic challenges faced by citizens and is implementing these reforms to create a stable, reliable, and affordable electricity supply,” she assured.