The Federal Government has dismissed media reports suggesting that electricity tariffs will soon increase by 65 percent, calling the claim a “misrepresentation” of what was said.
“It has become necessary to clarify media reports suggesting an imminent 65 percent increase in electricity tariffs,” Olu Arowolo Verheijen, Special Adviser to the President on Energy says.
She clarifies that her recent statement means after the government increased electricity tariffs for Band A customers in 2024, the money people now pay for electricity only covers about 65% of what it costs to generate and distribute power, while the remaining 35% is subsidised by the government as opposed to a 65% increase as reported by the media.

She clarifies that her recent statement means after the government increased electricity tariffs for Band A customers in 2024, the money people now pay for electricity only covers about 65% of what it costs to generate and distribute power, while the remaining 35% is subsidised by the government as opposed to a 65% increase as reported by the media.
President’s aide: Targeted Electricity Subsidies to improve power sector
She explains that while the government is committed to ensuring fairer pricing over the long term, the focus is on improving electricity supply and ensuring that vulnerable Nigerians are protected.
To achieve its objectives, the Federal Government is focusing on initiatives such as the Presidential Metering Initiative. “This will accelerate the nationwide rollout of 7 million prepaid meters, starting this year,” Verheijen states. The initiative will put an end to estimated Billings, improve transparency and increase revenue collection while attracting
Another initiative of the government to improve the country’s power sector is Targeted Electricity Subsidies. The Federal government spends over ₦200 billion per month which favour the 25% wealthy demography of Nigerians. To ensure fairness, it is introducing a targeted subsidy system. “The Federal Government is working towards a targeted subsidy system to ensure that low-income households receive the most support,” Verheijen adds.
Likewise, outstanding debts owed to power generation companies which she says have hindered investments in infrastructure and service improvements will be addressed for more stable electricity for Nigerians.
The government will also be reducing Costs on Alternative Power Generation to make it more affordable. For this, there will be incentives such as VAT and Customs Duty waivers on Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG).
“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,” Verheijen says.
She explains that every policy is designed with the Nigerian people in mind. With these reforms, she says that the government aims to expand electricity access and unlock prosperity for Nigerians.