
FG MOVES TO ENSURE AFFORDABLE ELECTRICITY FOR ALL NIGERIANS
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GREATRIBUNTVNEWS–TheFederal Government has clarified reports of an imminent 65% increase in electricity tariffs, stating that current tariffs cover approximately 65% of the actual cost of supplying electricity. The government subsidizes the remaining difference.
According to Olu Verheijen, Special Adviser to the President on Energy, the government is committed to ensuring fairer pricing in the long term. The immediate focus is on increasing electricity supply, reducing outages, and protecting the poorest and most vulnerable Nigerians.
To achieve this, the government has prioritized several initiatives, including:
– Presidential Metering Initiative (PMI): A nationwide rollout of 7 million prepaid meters to end estimated billing and ensure transparency in electricity charges.
– Targeted Electricity Subsidies: A system to ensure that low-income households receive the most support, making electricity more affordable and accessible.
– Settlement of Legacy Power Debt: Clearing outstanding debts to enable power companies to invest in better service delivery and infrastructure.
– Reducing Costs for Alternative Power Generation*: Fiscal incentives to lower the cost of alternative power sources, such as Compressed Natural Gas and Liquified Petroleum Gas.
Notably, the Nigerian Electricity Regulatory Commission (NERC) has approved a 340% increase in electricity tariff for customers under the Band A classification, with rates rising from N66 to N225 per kilowatt-hour .
However, the government’s initiatives aim to mitigate the impact of these changes on vulnerable Nigerians.