Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, stated that the federal government (FG) spends N200 billion monthly on electricity subsidies.
In a statement yesterday, the presidential aide noted that despite this spending, only a few Nigerians are benefiting from the subsidies.
She said: “Today, the Federal government spends over ₦200 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.”
Verheijen further stated that the Presidential Metering Initiative had begun taking steps to roll out seven million prepaid meters, starting this year.
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She added that the move would put an end to estimated billing, giving consumers confidence in their payments and ensuring transparency in electricity charges.
Verheijen said metering would also enhance revenue collection across the sector and attract the investments needed to strengthen Nigeria’s power infrastructure.
She further denied media reports claiming that the FG was planning an imminent 65 per cent increase in electricity tariffs.
The statement partly read: “This is a misrepresentation of what I actually said in a recent press interview. 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 subsidize the difference.
“Also, 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.
“Furthermore, 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.
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“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.
“These reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians.”