Leadnaija
The Nigerian government has revealed that it spends a massive N200 billion every month to subsidize electricity, yet the wealthiest Nigerians benefit the most from this intervention instead of the people who actually need financial relief. This was made known by Olu Verheijen, the Special Adviser to President Bola Tinubu on Energy, who clarified her earlier remarks on a possible increase in electricity tariffs....TAP HERE TO READ FULL DETAILS.>>
According to a report by Punch News, There had been reports suggesting that the government was planning to increase electricity tariffs by 65%, sparking concerns among Nigerians already struggling with the rising cost of living. Verheijen addressed these concerns, stating that her words had been misinterpreted.
According to her, she never said that tariffs would be increased by 65%. Instead, she explained that following the increase in Band A tariffs in 2024, electricity charges currently cover 65% of the actual cost of providing power, with the government subsidizing the remaining amount.
“It has become necessary to clarify media reports suggesting an imminent 65 per cent increase in electricity tariffs. 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 subsidise the difference,” Verheijen said.
She emphasized that the government is working towards a fairer pricing system while prioritizing efforts to improve electricity supply, reduce power outages, and protect vulnerable Nigerians. She explained that a targeted subsidy system is in the works to ensure that low-income households receive the most support, instead of the wealthiest Nigerians who currently benefit the most.
“Today, the Federal Government spends over N200bn 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,” she stated.
To tackle this issue, she noted that the government is working on a targeted subsidy system that will ensure only low-income Nigerians receive financial relief on electricity costs. According to her, this approach will help make electricity more affordable and accessible to hardworking citizens across the country.
Another pressing issue raised by Nigerians is the concern that unmetered customers may be unfairly charged under any tariff increase. Addressing this, Verheijen assured that the government is rolling out the Presidential Metering Initiative, which aims to distribute seven million prepaid meters across the country. This move, she said, will eliminate estimated billing and bring more transparency to electricity charges.
“Tap Here for the Full Story, One of the most significant steps in this reform is the Presidential Metering Initiative, which is accelerating the nationwide rollout of seven million prepaid meters, starting 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.”
She further revealed that the government is working to clear debts owed to power generation companies, which have prevented investments in better infrastructure. According to her, settling these debts will lead to a more stable electricity supply for all Nigerians.
Verheijen stressed that the government understands the economic hardships Nigerians face and is committed to making electricity more affordable while improving service delivery.
