The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has dismissed reports suggesting that the federal government is planning a 65 per cent increase in electricity tariffs, describing such claims as a “misrepresentation.”

Verheijen clarified that following the upward review of Band ‘A’ tariffs in 2024, current electricity charges now cover approximately 65 per cent of the actual cost of supply, with the federal government subsidising the remaining shortfall.

She revealed that the government currently spends around N200 billion per month on electricity subsidies, which primarily benefit the wealthiest 25 per cent of Nigerians rather than those who genuinely require financial support.

While reaffirming the government’s commitment to fairer electricity pricing in the long term, Verheijen emphasised that the immediate priority is to enhance power supply, reduce outages, and protect the most vulnerable Nigerians.

Among the government’s key power sector initiatives is the Presidential Metering Initiative (PMI), which aims to accelerate the nationwide rollout of seven million prepaid meters starting this year.

“This initiative will eliminate estimated billing, giving consumers confidence in their electricity payments and ensuring greater transparency. It will also improve revenue collection across the sector, attracting the investments needed to strengthen Nigeria’s power infrastructure,” she stated.

Despite the significant financial commitment to electricity subsidies, Verheijen stressed that much of the support is currently directed towards affluent Nigerians rather than lower-income households. To address this, the federal government is working towards a targeted subsidy system to ensure that the most vulnerable groups receive the highest level of support.

She also acknowledged that one of the biggest challenges to improving electricity services is the mounting debts owed to power generation companies. These financial obligations, she explained, have hindered new investments and stifled efforts to enhance electricity supply.

“By settling these outstanding debts, the government is enabling power companies to reinvest in infrastructure upgrades and service improvements, ultimately ensuring a more stable electricity supply for all Nigerians,” she said.

Additionally, Verheijen noted that the government is introducing fiscal incentives such as Value Added Tax (VAT) and customs duty waivers to reduce the cost of alternative energy sources, including Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).

“The government is fully aware of the economic challenges facing Nigerians and is committed to ensuring that power sector reforms lead to tangible improvements in daily life. Every policy is designed with the Nigerian people in mind—eliminating unfair estimated billing, ensuring subsidies reach those who need them most, and creating the conditions for stable, affordable electricity.

“These reforms will lay the foundation for better service delivery, increased electricity access for homes and businesses, and economic prosperity for all Nigerians,” she concluded.