Olu Verheijen, special adviser to Nigeria's president on energy, clarifies her comments about electricity tariff hikes. She explains the 2024 tariff increase covers 65% of supply costs, with subsidies in place. Government initiatives like the Presidential Metering Initiative and targeted subsidies aim to improve affordability and service delivery.
Olu Verheijen, the Special Adviser to President Bola Tinubu on Energy, has responded to concerns following her comments about Nigeria’s electricity tariffs. Earlier reports had quoted Verheijen suggesting a need for a substantial increase in electricity prices. However, she clarified that her remarks were misinterpreted.
Verheijen explained that after a tariff hike in 2024, electricity prices now account for about 65% of the actual supply cost, with the government subsidizing the remaining portion. Her clarification highlights that the goal is to strike a balance between fair pricing and continued subsidies to support the less privileged.
The adviser also emphasized that the immediate priority is enhancing the reliability of the power supply, reducing outages, and ensuring vulnerable citizens receive adequate protection. As part of these efforts, the Presidential Metering Initiative (PMI) is set to distribute 7 million prepaid meters, ensuring transparency in billing and reducing estimated charges.
Furthermore, Verheijen noted that the government spends over ₦200 billion monthly on subsidies, but the current system largely benefits wealthier Nigerians. A new targeted subsidy system is in the works, which will better serve low-income households, making electricity more accessible and affordable.
In her statement, Verheijen reaffirmed the government’s commitment to addressing the issues in Nigeria’s power sector, with plans to clear outstanding debts owed to power companies and reduce costs for alternative power sources like Compressed Natural Gas.
