Presidency Clarifies Electricity Tariff Hike, Announces 7 Million Prepaid Meters Rollout Nationwide
The presidency has clarified reports that it will increase the electricity tariffs in Nigeria by 65%.
Reports had quoted Olu Verheijen, the Special Adviser (SA) to President Bola Tinubu on Energy, as saying that many Nigerians’ electricity costs need to be increased by 65% in order to reflect the actual cost of electricity supply.
However, in a statement on Monday, Verheijen explained that she was misquoted, announcing a nationwide rollout of 7 million prepaid meters in year 2025.
Her words: “I would like to clarify media reports suggesting an imminent 65 percent increase in electricity tariffs.
“What I actually said: Following the increase of Band A tariffs, Current tariffs now cover about 65% of the actual cost of supplying electricity, with the Federal Government continuing to subsidize the difference.
“The Federal Government is committed to fair electricity pricing, protecting vulnerable Nigerians, and expanding access to reliable power.”
The Special Adviser disclosed that the FG currently spends ₦200 billion per month on electricity subsidies, noting that the wealthiest 25% of Nigerians receive the biggest share.
“To address this, we are working towards transitioning to a targeted subsidy system that ensures that low-income households receive the most support. Additionally, we are commencing the nationwide rollout of 7 million prepaid meters, under the Presidential Metering Initiative, beginning 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,” Verheijen remarked.
She added: “Beyond that, we’re lowering energy costs by removing VAT and Customs Duties on cleaner fuel alternatives like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)—offering Nigerians cheaper options for power.
“We understand the economic challenges facing Nigerians and remain committed to ensuring that power sector reforms deliver real benefits to Nigerian homes and businesses.”
