
The Federal Authorities is subsidising electrical energy provide by N200 billion month-to-month, Special Adviser to the President on Energy, Mrs. Olu Verheijen, mentioned yesterday.
She spoke as the federal government explores methods to enhance provide and make sure the subsidies are delivered to probably the most susceptible households.
The particular adviser dismissed insinuations in some quarters that the federal government was contemplating a 65 per cent improve in electrical energy tariffs.
Mrs. Verheijen clarified that even with the rise in tariffs for Band A electrical energy customers final yr, the federal government nonetheless supplies about 35 per cent electrical energy subsidy, equal to N200 billion month-to-month.
She mentioned in an announcement: “It’s a misrepresentation of what I really mentioned in a current press interview. I highlighted the truth that, following the rise in Band A tariffs in 2024, present tariffs now cowl roughly 65 per cent of the particular value of supplying electrical energy, with the Federal Authorities persevering with to subsidise the distinction.”
The particular adviser bemoaned the scenario the place a lot of the N200 billion subsidy “advantages the wealthiest 25 per cent of Nigerians relatively than those that really want help”.
She mentioned the federal government was implementing a multi-faceted programme to make sure efficient pricing and metering of electrical energy, scale back normal value of electrical energy provide and be certain that probably the most susceptible phase of the society have entry to electrical energy provide.
In accordance with her, whereas the federal government is dedicated to making sure fairer pricing over the long run, the rapid focus is on taking decisive actions to ship extra electrical energy to Nigerians, guarantee fewer outages, and assure the safety of the poorest and most susceptible Nigerians.
Verheijen outlined authorities’s energy sector priorities to incorporate mass rollout of pay as you go meters, focused subsidy regime that focuses on probably the most susceptible, settlement of legacy debt and discount in prices for various energy era.
She confused: “The federal government totally understands the financial realities going through residents and is dedicated to making sure that reforms within the energy sector result in tangible enhancements in individuals’s each day lives.
“Each coverage is designed with the Nigerian individuals in mind-eliminating unfair estimated billing, making certain that subsidies profit the correct individuals, and creating the circumstances for steady, reasonably priced electrical energy.
“These reforms are laying the muse for higher service supply, expanded entry to electrical energy for houses and companies, and unlocking prosperity for all Nigerians.”
Verheijen defined that below the Presidential Metering Initiative (PMI), the federal government plans to speed up nationwide rollout of seven million pay as you go meters, beginning this yr.
Mrs. Verheijen famous that the mass rollout of pay as you go meters would “lastly put an finish to the follow of estimated billing, giving customers confidence in what they’re paying for and making certain transparency in electrical energy fees”.
She added that metering would additionally enhance income assortment throughout the sector and thus appeal to the investments wanted to strengthen Nigeria’s energy infrastructure.
In accordance with her, a brand new subsidy regime template is underway to make sure that electrical energy subsidies get extra to probably the most susceptible within the society.
She mentioned: “To deal with this, the Federal Authorities is working in direction of a focused subsidy system to make sure that low-income households obtain probably the most assist. This method will make electrical energy extra reasonably priced and accessible for hundreds of thousands of hardworking households.”
The particular adviser identified that the settlement of legacy energy debt is a high precedence for the federal government as mounting money owed owed to energy era firms have been a part of the main roadblocks to improved service within the sector.
Verheijen added: “For years, these money owed have prevented investments in new infrastructure and hampered efforts to enhance electrical energy provide. By clearing these excellent obligations, the federal government is making certain that energy firms can reinvest in higher service supply, stronger infrastructure, and a extra steady electrical energy provide for all Nigerians.”
She mentioned by means of a spread of fiscal incentives, together with the Worth Added Tax (VAT) and Customs Obligation waivers, the federal government is working to decrease the price of various energy sources reminiscent of Compressed Pure Fuel (CNG) and Liquefied Petroleum Fuel (LPG).
Mrs. Verheijen emphasised that these priorities replicate the President Bola Ahmed Tinubu administration’s recognition of the financial realities going through Nigerians and its dedication to making sure that energy sector reforms ship tangible advantages to residents.