Olu Verheijen, President Bola Ahmed Tinubu’s special adviser on energy, has retracted her earlier comments regarding a potential 65 percent increase in electricity tariffs in Nigeria.
Verheijen issued this clarification on Monday via her official X account, following her previous remarks made less than 24 hours earlier, which suggested that Nigerians should prepare for a new electricity tariff hike in the coming months.
Her initial statement prompted significant backlash from the public, including former Nigerian senator Shehu Sani from Kaduna State, who urged the government to halt what he described as an “unconscionable tariff hike.”
This discussion arises as Nigerians continue to deal with the over 200 percent increase in electricity tariffs that took effect in April 2024.
In her latest statement, Verheijen explained that the current electricity tariff only covers approximately 65 percent of the actual costs associated with electricity supply.
She stated that the federal government is currently spending N200 billion on electricity subsidies. However, she noted that the wealthiest 25 percent of Nigerians benefit the most from these subsidies.
“I want to clarify recent media reports about a potential 65 percent increase in electricity tariffs.
“What I actually mentioned is that, following the rise in Band A tariffs, current rates now cover approximately 65 percent of the actual cost of electricity supply, with the Federal Government continuing to subsidize the remaining amount.
“The Federal Government is dedicated to ensuring fair electricity pricing, protecting vulnerable Nigerians, and enhancing access to reliable power.
“At present, N200 billion is allocated monthly for electricity subsidies, but the wealthiest 25 percent of Nigerians receive the largest portion. To tackle this issue, we are working on transitioning to a targeted subsidy system that prioritizes support for low-income households.
“In addition, we are reducing energy expenses by eliminating VAT and Customs Duties on cleaner fuel alternatives such as Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), providing Nigerians with more affordable energy options.
“We recognize the economic difficulties that Nigerians are experiencing and are dedicated to ensuring that reforms in the power sector yield tangible benefits for households and businesses across the country,” she emphasized.”
