By Kolawole Ojebisi
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has cleared the air concerning a statement on imminent electricity taríff in Nigeria attributed to her recently.
Verheijen was quoted in a January 30 Bloomberg news report which was subsequently published in Nigeria over the weekend.
The special adviser was quoted as saying Nigeria’s power prices need to rise by about two-thirds (66 percent) for many customers to reflect the actual cost of electricity supply.
Verheijen, according to the report, stressed that higher electricity tariffs must be carefully balanced with subsidies to support less-affluent consumers across the country.
However, in a statement on Monday, Verheijen said her statement was “misrepresented”.She clarified that after the 2024 Band A tariff increase, electricity tariffs now cover about 65 percent of the supply cost, while the government continues to subsidise the remaining 35 percent to bridge the gap.
“I highlighted the fact 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 subsidize the difference,” she stated.
“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.”
Speaking further, Verheijen stressed that as part of its commitment to providing more electricity, reducing outages, and protecting vulnerable Nigerians, 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 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 will also improve revenue collection across the sector and will attract the investments needed to strengthen Nigeria’s power infrastructure.”
Still speaking on the federal government’s priorities in the energy sector, the presidential aide said over N200 billion is being spent monthly to subsidise electricity costs for consumers.
“Targeted Electricity Subsidies: Today, the Federal government spends over ₦200 billion per month on electricity subsidies, but much of this support benefits the wealthiest 25 percent of Nigerians rather than those who truly need assistance,” Verheijen.
“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.
