Presidency clarifies electricity tariffs increase
Power grid
Abdullateef Fowewe
The Special Assistant to President Bola Tinubu on Social Media, Dada Olusegun has clarified electricity tariffs amid the plan to increase the electricity tariffs.
Olusegun noted that the recent increase in “Band A” means that the current electricity tariffs is now covering 65% of the actual cost of supplying power, while the current administration continues to subsidise the difference to support affordability.
However, currently, tariffs cover approximately 65% of the supply cost, with N200 billion spent monthly on subsidies, predominantly benefiting the wealthiest 25% of Nigerians.
The President Media aide noted these on X (formally Twitter) while replying to a post that noted that “The Federal Government says plans are ongoing to increase electricity tariffs over the next few months”.
Olusegun stressed that address the imbalance, the administration is transitioning to a targeted subsidy system that prioritises assistance for low-income families. Additionally, the Presidential Metering Initiative is set to roll out 7 million prepaid meters nationwide this year, which will eliminate estimated billing and enhance transparency in electricity consumption.
He wrote, “First of all, the recent increase in Band A tariffs means that current electricity tariffs now cover about 65% of the actual cost of supplying power, while the President Tinubu’s administration continues to subsidize the difference to support affordability.
“₦200 billion per month is currently spent on electricity subsidies. However, the wealthiest 25% of Nigerians receive the biggest share, rather than those who need it most. To fix this, we are transitioning to a targeted subsidy system to prioritize low-income households.
“The Presidential Metering Initiative is rolling out 7 million prepaid meters nationwide this year; ending estimated billing and ensuring transparency.
“To lower energy costs, VAT and Customs Duties on cleaner fuel alternatives like CNG and LPG have been removed, giving Nigerians cheaper power options.
Say No To Misinformation!”
