Wealthy Nigerians Major Beneficiaries Of N200bn Electricity Subsidy – FG

The Special Adviser to the President on Energy, Olu Verheijen, said on Monday that the federal government spends over ₦200bn per month on electricity subsidy.

This support, Verheijen said benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance.

“Today, the Federal Government spends over ₦200bn per month on electricity subsidies, but much of this support benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance,” she said.

Verheijen made this known in a statement issued in Abuja, where she also dismissed media reports suggesting that the federal government was planning to increase electricity tariffs by 65 per cent.

She clarified that her comments had been taken out of context.

“It becomes necessary to clarify media reports suggesting an imminent 65 per cent increase in electricity tariffs.

“This is a misrepresentation of what I actually said in a recent press interview.

“I highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 per cent of the actual cost of supplying electricity, with the Federal Government continuing to subsidize the difference.”

She noted that electricity debts had hindered investments in new infrastructure, limiting efforts to improve power supply.

However, she stated that by clearing these debts, the government is ensuring that power companies reinvest in better service delivery and a more stable electricity supply for Nigerians.

Verheijen also emphasized the Presidential Metering Initiative (PMI), which is accelerating the nationwide rollout of 7 million prepaid smart meters to end estimated billing and ensure transparency.

“One of the most significant steps in this reform is the Presidential Metering Initiative, which is accelerating the nationwide rollout of 7 million prepaid meters, starting this year.

“This will finally put an end to the practice of estimated billing, giving consumers confidence in what they are paying for and ensuring transparency in electricity charges.

“Metering will also improve revenue collection across the sector and will attract the investments needed to strengthen Nigeria’s power infrastructure.”

She reiterated that while the government is committed to fair pricing in the long term, its immediate focus is on improving electricity supply, reducing outages, and protecting the most vulnerable Nigerians.

The government, she added, is developing a targeted subsidy system to ensure that low-income households receive the most support, making electricity more affordable and accessible for millions of hardworking families.

Wealthy Nigerians Major Beneficiaries Of N200bn Electricity Subsidy – FG is first published on The Whistler Newspaper