The Presidency has clarified its position on Nigeria’s power sector reforms, emphasizing that the upcoming smart metering initiative, set to roll out in 2025, will benefit at least seven million households. This initiative aims to address the problem of estimated billing, providing consumers with accurate metering and greater transparency in electricity charges.
Olu Verheijen, President Bola Tinubu’s Special Adviser on Energy, also addressed concerns regarding a reported 65 percent electricity tariff increase, describing it as a misrepresentation of her comments. Verheijen explained that while the government has implemented a Band A tariff increase in 2024, the Federal Government continues to subsidize the remaining 35 percent of the cost of electricity supply. She stressed that the government’s immediate priority is to improve electricity delivery, reduce outages, and protect vulnerable Nigerians from excessive bills.
The Presidential Metering Initiative (PMI) aims to install prepaid meters nationwide, enhancing revenue collection in the power sector and attracting necessary investments to strengthen infrastructure. In addition, the government plans to introduce a targeted subsidy system to ensure that low-income households receive the most support, addressing inefficiencies in the current subsidy system that disproportionately benefit wealthier Nigerians.
Furthermore, Verheijen highlighted efforts to tackle the long-standing debts owed to power generation companies, which have hindered infrastructure development and service improvements. The government is also providing fiscal incentives to reduce the cost of alternative energy sources like Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
These reforms, according to Verheijen, are part of the government’s broader efforts to provide affordable, reliable electricity and improve the lives of Nigerian citizens.