The Federal Government has debunked recent media reports suggesting an imminent 65% increase in electricity tariff, assuring Nigerians that current reforms aim to enhance service delivery and make electricity more affordable for low-income households.
Special Adviser to the President on Energy, Olu Verheijen, clarified that the 65% figure refers to the proportion of electricity supply costs now covered by tariffs after the 2024 Band A tariff adjustment, with the government still subsidizing the difference.
She said “Currently, the Federal Government spends over ₦200 billion per month on electricity subsidies. However, much of this support benefits the wealthiest 25% of Nigerians rather than lower-income households. To address this, Verheijen stated that the government is developing a targeted subsidy system that will ensure those who need assistance the most receive it.”
A major step in the power sector reform is the Presidential Metering Initiative, which will roll out seven million prepaid meters nationwide starting this year, 2025. This initiative will put an end to estimated billing, giving Nigerians transparency in electricity charges and ensuring they only pay for what they consume.
“Metering will also improve revenue collection across the sector, making it more attractive to investors and strengthening Nigeria’s power infrastructure,” Verheijen added.
For years, outstanding debts in the power sector have hindered investments and the expansion of infrastructure. The government is now working to clear these obligations, allowing power companies to reinvest in service delivery, improve infrastructure, and ensure a more stable electricity supply for all Nigerians.
Reaffirming the government’s commitment to the well-being of Nigerians, Verheijen assured that all policies are designed with the people in mind—eliminating unfair billing, ensuring subsidies benefit the right households, and creating conditions for stable and 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,” she concluded.
With these reforms in motion, Nigerians can expect a more transparent, efficient, and reliable power sector that supports economic growth and improves daily life.
