Just In: ‘No Price Hike Presidency Refutes Alarming Report on 65% Electricity Tariff Rise

No Price Hike: Presidency Refutes Alarming Report on 65% Electricity Tariff Rise

The presidency has dismissed claims that the government is planning a 65% increase in electricity tariffs. President Bola Tinubu’s Special Adviser on Energy, Olu Arowolo Verheijen, clarified that the Federal Government remains committed to stabilizing the power sector and shielding vulnerable citizens from excessive financial burdens…….READ MORE

In a statement issued on Monday, Verheijen explained that her previous remarks had been misinterpreted. She clarified that current electricity tariffs cover about 65% of the actual cost of supply, following the Band A tariff increase in 2024, with the government continuing to subsidize the remaining portion.

Verheijen emphasized that while the government is working toward fairer long-term pricing, the immediate focus is on enhancing electricity supply, reducing outages, and protecting the most vulnerable Nigerians. She also highlighted the government’s key reform priorities, including metering, targeted subsidies, debt resolution, and the promotion of alternative power generation.

A major initiative outlined by Verheijen is the Presidential Metering Initiative (PMI), which will roll out 7 million prepaid meters across the country starting this year. This move aims to eliminate estimated billing, ensure transparency, and improve revenue collection in the power sector.

Additionally, the government plans to implement a targeted subsidy system, focusing support on low-income households rather than wealthier Nigerians. The presidency also disclosed that it spends over ₦200 billion monthly on electricity subsidies, much of which benefits the wealthiest 25% of the population.

Verheijen concluded by stressing that these reforms are designed to strengthen Nigeria’s power infrastructure and provide equitable support to the citizens who need it most.