A report by Punch has revealed that the Federal Government spends a staggering N200 billion each month to subsidize electricity, with the wealthiest 25 percent of Nigerians benefiting the most rather than those in genuine need. This was disclosed by the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, in a statement on Monday.
Verheijen’s remarks come in response to reports suggesting that electricity tariffs would soon be increased by two-thirds to strengthen the power sector. While she did not deny the possibility of an adjustment, she clarified that she never stated there would be a 65 percent hike in tariffs, as some reports had suggested.“It has become necessary to clarify media reports suggesting an imminent 65 percent increase in electricity tariffs. This is a misrepresentation of what I actually said in a recent press interview,” she stated.
According to her, following the increase in Band A tariffs in 2024, current electricity charges now cover about 65 percent of the actual cost of supply, with the government subsidizing the remaining amount. This subsidy, she explained, continues to place a significant financial burden on the government.The revelation has reignited discussions on Nigeria’s electricity subsidy policy, with many questioning the sustainability of the current model. Analysts argue that a more targeted subsidy structure could ensure that relief reaches the most vulnerable, rather than disproportionately benefiting wealthier consumers.
