The Special Adviser to the President on Energy, Olu Arowolo Verheijen, has denied saying the federal government is considering an increase of 65 per cent in electricity tariff.

In a press statement on her X account, Verheijen said media reports were a misrepresentation of what she actually said in a recent press interview.

Recall that Bloomberg quoted Verheijen as saying Nigeria’s power prices need to rise by about two-thirds for many customers to reflect the cost of supplying it.

But in the statement, she said following the increase in B and 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.

She noted that while the government is indeed committed to ensuring fairer pricing over the long term, the immediate focus is on taking decisive action to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.

“In line with these, the Federal government’s power sector priorities include: Presidential Metering Initiative (PMI): One of the most significant steps in this reform is the Presidential Metering Initiative, which is accelerating the nationwide rollout of 7 million prepaid metres, starting this year,” she said.

She said this would 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 and improving revenue collection across the sector, while attracting the investments needed to strengthen Nigeria’s power infrastructure.

She added that the federal government spends over N200bn per month on electricity subsidies, but much of the support benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance.

“To address this, the federal government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families.”