The Federal Government spends N200 billion monthly on electricity subsidies, a policy that disproportionately benefits the wealthiest 25% of Nigerians rather than those in need, according to Olu Verheijen, Special Adviser to President Bola Tinubu on Energy.
In a statement on Monday, Verheijen clarified reports about an imminent 65% tariff hike, noting that while current tariffs cover only 65% of actual electricity costs, the government is committed to a fairer pricing system that protects vulnerable Nigerians.
She emphasized the FG’s focus on targeted subsidies to assist low-income households and announced the Presidential Metering Initiative, which will roll out seven million prepaid meters nationwide to eliminate estimated billing.
The government is also addressing debts owed to power generation companies to encourage investment in infrastructure and stabilize electricity supply. Additionally, fiscal incentives such as VAT and customs duty waivers are being introduced to lower the cost of alternative power sources like CNG and LPG.
However, the Human Rights Writers Association of Nigeria (HURIWA) has criticized the proposed tariff increase, calling it an unconstitutional policy that could worsen economic hardship and spark public unrest.
