A press statement by the Special Adviser to the President on Energy, Olu Verheijen, also disclaimed a viral report quoting her as saying that electricity consumers should brace up for another 65% tariff increase.
She instead said that the federal government has concluded plans to end estimated billing in 7 million households with the rollout of smart meters as the Federal Government’s immediate priorities in the power sector were metering, debt reduction and the protection of the most vulnerable Nigerians through targeted subsidies.
Verheijen described the media reports as a misrepresentation of what she said in a recent press interview.
According to her “I highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 per cent of the actual cost of supplying electricity, with the Federal government continuing to subsidise the difference”
The special adviser said that while the government is indeed committed to ensuring fairer pricing over the long term, the immediate focus 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.
Federal Government Power Sector Priorities
She highlighted the Federal government’s power sector priorities to include: the Presidential Metering Initiative (PMI), targeted electricity subsidies, settlement of legacy power debt, and reducing costs for alternative power generation.
Presidential Metering Initiative
She described the Presidential Metering Initiative (PMI), as “one of the most significant steps in this reform” which according to her, is accelerating the nationwide rollout of 7 million prepaid meters, starting this year.
She said 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, Verheijen said, will also improve revenue collection across the sector and attract the investments needed to strengthen Nigeria’s power infrastructure.
Targeted Electricity Subsidies
She said that as at today, the Federal government spends over ₦200 billion per month on electricity subsidies, and much of this support benefits the wealthiest 25% of Nigerians rather than those who truly need assistance.
The special adviser said that to address this, the Federal government was working towards a targeted subsidy system to ensure that low-income households receive the most support, adding that this approach will make electricity more affordable and accessible for millions of hardworking families.
Settlement of Legacy Power Debt
According to her, the Federal government is addressing one of the major roadblocks to improved service, the mounting debts owed to power generation companies. For years, these debts 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.
Reducing Costs for Alternative Power Generation
Verheijen said that through a range of fiscal incentives, including VAT and Customs Duty Waivers, the Federal Government is working to lower the cost of alternative power sources such as Compressed Natural Gas and Liquified Petroleum Gas.
“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.”
According to her, these reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians,
