Latest Headlines
FG Clarifies Position on Electricity Tariff Hike, Says N200bn Paid on Subsidy Monthly

Emmanuel Addeh in Abuja
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, yesterday clarified reports indicating that the federal government was about raising electricity tariffs by 65 per cent, describing it as a ‘misrepresentation’.
She highlighted that following the increase in Band ‘A’ tariffs in 2024, current tariffs now cover approximately 65 percent of the actual cost of supplying electricity, with the federal government continuing to subsidise the difference.
Currently, the presidential aide said that the federal government pays as much as N200 billion monthly on electricity subsidy, arguing that this benefits the wealthiest 25 per cent of Nigerians, rather than those who truly need assistance.
While the government is committed to ensuring fairer pricing over the long term, the immediate focus, Verheijen pointed out, is on taking decisive action to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.
In line with these, the federal government’s power sector priorities, she said, include: The Presidential Metering Initiative (PMI), which is meant to accelerate the nationwide rollout of 7 million prepaid meters, starting this year.
“This will finally put an end to the practice of estimated billing, giving consumers confidence in what they are paying for and ensuring transparency in electricity charges. Metering will also improve revenue collection across the sector and will attract the investments needed to strengthen Nigeria’s power infrastructure.
“Today, the federal government spends over N200 billion per month on electricity subsidies, but much of this support benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance.
“To address this, the federal government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families,” she explained.
Furthermore, she said the federal government was addressing one of the major roadblocks to improved service, which is the mounting debts owed to power generation companies.
For years, these debts, she argued, have prevented investments in new infrastructure and hampered efforts to improve electricity supply.
“By clearing these outstanding obligations, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians,” she said.
Through a range of fiscal incentives, including Value Added Tax (VAT) and customs duty waivers, she said the federal government was working to lower the cost of alternative power sources such as Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)
“The government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s daily lives.
“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,” Verheijen noted.