Olu Verheijen, special adviser to President Bola Tinubu on energy, has clarified her recent remarks regarding the increase in electricity tariffs in Nigeria.
On January 30, a report cited the special adviser stating that Nigeria’s power prices must rise by approximately two-thirds (66 per cent) to accurately reflect the actual cost of electricity supply.
She emphasised that any increase in electricity tariffs must be carefully balanced with subsidies to support less affluent consumers across the country.
However, in a statement on Monday, Verheijen claimed her comments had been “misrepresented”.
She clarified that following the 2024 Band A tariff increase, current electricity tariffs cover about 65 per cent of the supply cost, with the government subsidising the remaining 35 per cent to bridge the gap.
“I highlighted that, after the Band A tariffs increased in 2024, current rates now account for approximately 65 per cent of the actual cost of supplying electricity, while the Federal Government continues to subsidise the difference,” she stated.
“Moreover, while the government is committed to achieving fairer pricing in the long term, the immediate focus is on implementing decisive measures to deliver more electricity to Nigerians, reduce outages, and protect our poorest and most vulnerable citizens.”
To support its commitment to increasing electricity supply, reducing outages, and safeguarding vulnerable Nigerians, she noted that the federal government’s power sector priorities include the Presidential Metering Initiative (PMI).
“One of the most significant steps in this reform is the Presidential Metering Initiative, which aims to accelerate the nationwide rollout of 7 million prepaid meters, starting this year,” she explained.
“This initiative will put an end to the practice of estimated billing, instilling consumer confidence in what they are paying for and ensuring transparency in electricity charges.
“Metering will also enhance revenue collection across the sector and attract the necessary investment to strengthen Nigeria’s power infrastructure.”
Continuing to address the federal government’s priorities in the energy sector, Verheijen revealed that over N200 billion is spent monthly on subsidising electricity costs for consumers.
“Targeted Electricity Subsidies: Currently, the Federal Government allocates over ₦200 billion per month to electricity subsidies; however, much of this support disproportionately benefits the wealthiest 25 per cent of Nigerians, rather than those who genuinely need assistance,” Verheijen stated.
“To rectify this, the Federal Government is striving for a targeted subsidy system that prioritises support for low-income households.
“This approach will help make electricity more affordable and accessible for millions of hardworking families.
“Settlement of Legacy Power Debt: Furthermore, the Federal Government is tackling one of the major barriers to improved service—the mounting debts owed to power generation companies.
“For years, these debts have hindered investment in new infrastructure and impeded efforts to enhance electricity supply.
“By clearing these outstanding obligations, the government is enabling power companies to reinvest in better service delivery, robust infrastructure, and a more stable electricity supply for all Nigerians.
“Reducing Costs for Alternative Power Generation: Through various fiscal incentives, including VAT and Customs Duty Waivers, the Federal Government is striving to lower the costs of alternative power sources such as Compressed Natural Gas and Liquefied Petroleum Gas.”
Verheijen concluded that the government’s power sector reforms prioritise the needs of Nigerians, aiming to provide stable, affordable electricity and unlock economic prosperity.
