By Our Correspondent
Presidential Adviser on Energy, Olu Verheijen, has signaled that Nigerians are rich enough to foot an imminent 65% tariff increase underway.
Verheijen suggested that wealthier Nigerians can absorb a potential electricity tariff hike, revealing that the N200 billion monthly subsidy primarily benefits the richest 25% of the population rather than those in real need.
While clarifying reports of this imminent tariff hike, the Presidential Adviser did not deny a forthcoming hike but stressed that current tariffs only cover 65% of electricity supply costs, leaving the government to fund the difference.
Her remarks signal a shift towards a targeted subsidy system, implying that wealthier Nigerians will soon bear the full cost of power consumption.
She highlighted the government’s Presidential Metering Initiative, which aims to reduce estimated billing and increase transparency, suggesting that a fairer pricing structure is being prepared.
Additionally, clearing debts owed to power companies is seen as a step to attract investment and improve electricity supply.
Although Verheijen assured that reforms would protect vulnerable Nigerians, her statements indicate that a tariff increase is inevitable, with the government preparing wealthier citizens to shoulder the financial burden of electricity reforms.