The Special Adviser to the President on Energy, Mrs. Olu Verheijen, said yesterday that the Federal Government is subsidising electricity supply by N200 billion monthly.
She spoke as the government explores ways to improve supply and ensure the subsidies are delivered to the most vulnerable households.
The special adviser dismissed insinuations in some quarters that the government was considering a 65 per cent increase in electricity tariffs.
Mrs. Verheijen clarified that even with the increase in tariffs for Band A electricity consumers last year, the government still provides about a 35 per cent electricity subsidy, equivalent to N200 billion monthly.
She said in a statement: “It 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.”
The special adviser bemoaned the situation where much of the N200 billion subsidy “benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance”.
She said the government was implementing a multi-faceted programme to ensure effective pricing and metering of electricity, reduce general cost of electricity supply and ensure that the most vulnerable segment of the society have access to electricity supply.
According to her, while the government is committed to ensuring fairer pricing over the long term, the immediate focus is on taking decisive actions to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.
Verheijen outlined the government’s power sector priorities to include mass rollout of prepaid meters, targeted subsidy regime that focuses on the most vulnerable, settlement of legacy debt and reduction in costs for alternative power generation.
