- 7 Million Households to Benefit From New Metering Rollout in Y2025
Mrs Olu Arowolo Verheijen, Special Adviser to the President on Energy, has clarified recent media reports suggesting an imminent 65 percent increase in electricity tariffs.
In a statement, Verheijen emphasized that while current tariffs cover approximately 65 percent of the actual cost of electricity supply, with the government subsidizing the remaining portion, the focus remains on improving service delivery and protecting vulnerable Nigerians.
“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,” Verheijen stated.
Key priorities for the Federal Government in the power sector include:
- Accelerated Metering Rollout: The Presidential Metering Initiative aims to install 7 million prepaid meters this year 2025, ending estimated billing and improving revenue collection.
- Targeted Electricity Subsidies: The government is transitioning towards a more targeted subsidy system to ensure that support reaches low-income households most in need.
- Addressing Legacy Power Debt: The government is working to clear outstanding debts owed to power generation companies, enabling them to reinvest in infrastructure and improve service delivery.
- Reducing Costs for Alternative Power Sources: Fiscal incentives, such as VAT and Customs Duty Waivers, are being implemented to lower the cost of alternative power sources like Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG).
Verheijen emphasized that the government understands the economic realities facing Nigerians and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s lives.
“Every policy is designed with the Nigerian people in mind – eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity,” She stated.
These reforms aim to lay the foundation for better service delivery, expanded access to electricity for homes and businesses, and ultimately, unlock prosperity for all Nigerians.
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