The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has debunked reports of an impending 65% increase in electricity tariffs. In a statement released on Monday, Verheijen clarified that the current Band A tariffs cover only about 65% of the actual cost of electricity supply, with the Federal Government subsidizing the remaining amount.
Verheijen emphasized the government’s commitment to fair electricity pricing, protecting vulnerable Nigerians, and expanding access to reliable power. She revealed that the government spends ₦200 billion monthly on electricity subsidies, but noted that the wealthiest 25% of Nigerians receive the biggest share.
To address this disparity, the government is working towards a targeted subsidy system that ensures low-income households receive the most support. Additionally, Verheijen announced plans for a nationwide rollout of seven million prepaid meters under the Presidential Metering Initiative, starting this year.
Measures to Lower Energy Costs:
Beyond electricity pricing, Verheijen highlighted measures aimed at reducing energy costs. These include:
– Tax Relief on Cleaner Fuel Alternatives_: Removing VAT and Customs Duties on cleaner fuel alternatives like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
– Promoting Cheaper Power Options_: Offering Nigerians cheaper options for power through the use of cleaner fuel alternatives.
Verheijen reassured Nigerians that the government remains committed to power sector reforms, acknowledging the economic challenges facing the country and ensuring that reforms deliver real benefits to Nigerian homes and businesses.
