By Uche Amunike
The federal government has, Monday, debunked rumors making the rounds that there is a looming 65% Nigerian electricity tariff hike.
Speaking, through a statement signed and released, Monday, by the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, she made this disclosure while reacting to reports that alleged that the federal government is suggesting an imminent 65% increase in electricity tariffs. She clarified that the report is a misrepresentation of what she said in a recent press interview.
Hear her: ‘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,’ she clarified.
According to Verheijen, even though the federal government is very committed to ensuring the pricing in the long term, the immediate focus they have presently, is to take decisive action to deliver more electricity to Nigerians, ensure fewer outages and also, guarantee the protection of the poorest and most vulnerable masses.
She streamlined the priorities of the federal government’s power sector, which include the Presidential Metering Initiative (PMI), targeted electricity subsidies, settlement of legacy power debt, as well as reduction of costs for alternative power generation.
She also said that one of the most important reforms taken is the PMI, which is accelerating the nationwide rollout of 7 million prepaid meters, kicking off this year.
According to her, it will finally put an end to the practice of estimated billing to give consumers confidence in what they are paying for, and ensuring transparency in electricity charges.
She also assured that metering will improve revenue collection across the sector and attract the investments needed to strengthen Nigeria’s power infrastructure.
The federal government, according to her, spends over N200 billion per month on electricity subsidies. However, much of this support is beneficial to the wealthiest 25% of Nigerians instead of those who truly need assistance.
She assured that in order to address this misnomer, the federal government is working towards a targeted subsidy system that will ensure that low income households receive the major support.
Her words: ‘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 assured that the government is working hard to make power companies reinvest in better service delivery, stronger infrastructure, as well as a more stable electricity supply for every Nigerian by clearing these outstanding obligations.
She stated that the government is also working to reduce the cost of alternative power sources like Compressed Natural Gas (CNG) and Liquified Petrol Gas (LPG), through a range of physical incentives like VAT and Customs Duty Waivers.
She averred that the government understands the economic realities facing Nigerians and such is committed to seeing that reforms in the power sector brings about tangible improvements in the daily lives of the people.
Hear her: ‘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.’
