The Federal Government has revealed that it currently spends a staggering N200 billion monthly on electricity subsidies to support Nigerian households and businesses.
This disclosure was made by Olu Verheijen, the Special Adviser to President Bola Ahmed Tinubu on Energy, in an official statement released on Monday. She outlined the government’s commitment to ensuring access to affordable electricity while addressing inefficiencies in the subsidy system.
Verheijen emphasized that one of the Federal Government’s key priorities in the power sector is transitioning towards a more targeted subsidy framework aimed at directing financial support to low-income households who need it the most. She noted that the current structure disproportionately benefits wealthier Nigerians rather than those in critical need of assistance.
According to her, while the government is dedicated to implementing a fairer pricing model for electricity in the long run, the immediate focus is on ensuring more reliable power supply, reducing outages, and protecting the most vulnerable Nigerians from high electricity costs.
In her statement, she said: “Today, the Federal Government spends over ₦200 billion 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. To address this, the Federal Government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families.”
She reiterated the government’s commitment to balancing economic sustainability with social welfare, ensuring that reforms in the electricity sector will not disproportionately affect those who are already struggling with financial burdens.