
Olu Verheijen, Special Adviser to the President on Energy (Nigeria)
Olu Verheijen, Special Adviser to the President on Energy (Nigeria), clarifies:
There have been media reports suggesting an imminent 65% increase in electricity tariffs. To clarify, following the Band A tariff hike, current rates now cover about 65% of the actual cost of electricity supply, with the Federal Government continuing to subsidize the difference.
The government is committed to ensuring fair pricing, protecting vulnerable Nigerians, and expanding access to reliable electricity. Currently, ₦200 billion is spent monthly on electricity subsidies, but the wealthiest 25% of Nigerians benefit the most. To address this, we’re working toward a targeted subsidy system that prioritizes support for low-income households.
Additionally, the nationwide rollout of 7 million prepaid meters will begin this year under the Presidential Metering Initiative, ending the use of estimated billing. This will bring transparency and give consumers confidence in their electricity charges.
Moreover, we’re reducing energy costs by removing VAT and Customs Duties on cleaner fuels like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), providing more affordable options for power.
We understand the economic challenges Nigerians face and remain dedicated to ensuring that power sector reforms deliver tangible benefits to households and businesses.
