The Federal Government spends over N200 billion monthly on electricity subsidies, which disproportionately benefit the wealthiest 25% rather than low-income households.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, clarified media reports regarding a rumored 65% tariff hike. She explained that current tariffs cover only 65% of the actual electricity supply cost, with ongoing government subsidies bridging the gap.
The government is focusing on reforms, including a targeted subsidy system to better support low-income households, reducing estimated billing through the Presidential Metering Initiative, and clearing debts owed to power generation companies to boost investments and infrastructure. Fiscal incentives aim to lower the cost of alternative energy sources like Compressed Natural Gas and Liquified Petroleum Gas.
The Human Rights Writers Association of Nigeria (HURIWA) criticized the potential tariff increase, warning it could incite public unrest due to existing economic hardships. The group described the proposal as unconstitutional and harmful to Nigerians’ economic survival.
