The Special Adviser on Energy to the President, Olu Verheijen, said on Monday her statement on the planned increase in the electricity tariff was misrepresented.
Verheijen on January 30 advocated an increase in Nigeria’s power prices by about two-thirds (66 percent) to reflect the actual cost of electricity supply.
She argued that higher electricity tariffs must be carefully balanced with subsidies to support less-affluent consumers across the country.
The remark attracted backlash in the country with many questioning the rationale behind the proposal.
However, in a statement on Monday, the presidential aide clarified that she was misrepresented in the report published by Bloomberg.
She said after the increase in the tariff for customers in Band A last year, electricity tariffs now cover about 65 percent of the supply cost, while the government continues to subsidise the remaining 35 percent to bridge the gap.
Verheijen said: “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 subsidize the difference.
“Also, 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.”
She said the federal government’s power sector priorities include the presidential metering initiative (PMI) conceived to provide more electricity, reducing outages, and protect vulnerable Nigerians.
“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,” the presidential aide stated.
By: Babajide Okeowo