•••Laments Spending N200 Bb Per Month in Electricity Subsidy

•••Vows to eliminate estimated billing
Attah Ede, Makurdi
The Federal government on Monday, dismissed media reports that it has plans to increase electricity tariff by 65 percent.
The Special Adviser to the President on Energy, Olu Arowolo Verheijen, explained that she was quoted out of context in the reports.
Arowolo Verheijen disclosed this in a statement in Abuja, on Monday while reacting to purported media reports suggesting an imminent 65 percent increase in electricity tariffs.
The Federal Government also lamented the over over ₦200 billion monthly electricity subsidy every month.
The government says that subsidy benefits the wealthiest 25 percent of Nigerians rather than those who truly need assistance.
The federal government through the Presidential Metering Initiative (PMI) is also accelerating the nationwide rollout of 7 million prepaid smart meters to address issues of estimated billing for 7 million households.
She explained that while government is indeed committed to ensuring fairer pricing over a 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.
She noted that what the media reported was a misrepresentation of what she actually said in a recent interview granted to journalists.
She maintained that following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 percent of the actual cost of supplying electricity, with the Federal government continuing to subsidize the difference.
According to her, for years, electricity debts have prevented investments in new infrastructure and had hampered efforts to improve electricity supply.
“By clearing these outstanding obligations, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians…
” Therefore, it become necessary to clarify media reports suggesting an imminent 65 percent increase in electricity tariffs. This 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 percent of the actual cost of supplying electricity, with the Federal government continuing to subsidize the difference.
“One of the most significant steps in this reform is the Presidential Metering Initiative, which is accelerating the nationwide rollout of 7 million prepaid meters, starting this year.
“This will 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.
“Metering will also improve revenue collection across the sector and will attract the investments needed to strengthen Nigeria’s power infrastructure.
“Today, the Federal government spends over ₦200 billion per month on electricity subsidies, but much of this support benefits the wealthiest 25 percent of Nigerians rather than those who truly need assistance”.
According to him, the Federal government is working towards a targeted subsidy system to ensure that low-income households receive the most support while the approach will make electricity more affordable and accessible for millions of hardworking families.