The Presidency has debunked media reports suggesting a 63 percent hike in electricity tariff, revealing that instead the federal government is targeting the less privileged by rolling out smart meters to various households.
A statement by the Special Adviser to the president on Energy, Mrs. Olu Arowolo Verheijen, on February 3, 2025, explained that the media misrepresented her statement.
“It has become necessary to clarify media reports suggesting an imminent 65 percent increase in electricity tariffs. This is a misrepresentation of what I 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 percent of the actual cost of supplying electricity, with the federal government continuing to subsidize the difference,” the president’s aide said.
The statement added that the federal government is committed to ensuring fairer pricing over the long term, with the immediate focus being on taking decisive action to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.
“In line with these, the federal government’s power sector priorities include, presidential metering initiative, which is accelerating the nationwide roll-out of 7 million prepaid meters, starting this year.
“This will finally put an end to the practice of estimated billing, give consumers confidence in what they are paying for and ensure 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.
“Today, the federal government spends over ₦200 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.
Read also: Electricity Tariff Hike Looms: Nigerian customers on band A to brace up as subsidy hits N181bn
“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,” Tinubu’s aide disclosed.
Furthermore, the special adviser said the federal government is addressing the issue of the mounting debts owed to power generation companies that have for years, 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.
“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 (CNG) and Liquified Petroleum Gas (LPG).
“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,” the aide added.
