FG metering programme to wipe industry debts, end estimated billing
Sopuruchi Onwuka
Special Adviser to the President on Energy, Mrs Olu Arowolo Verheijen, has clarified that government’s priority in providing meters in the Nigerian electricity supply industry is to enhance transparent transactions and address debts arising from billing disputes.
Mrs Verheijen maintained that government still bears some 35 percent of electricity bills in the country, saying that the “current tariffs now cover approximately 65 percent of the actual cost of supplying electricity, with the Federal government continuing to subsidize the difference.”
She dismissed some media reports suggesting an imminent 65 percent increase in electricity tariffs, explaining that while the government is “committed to ensuring fairer pricing over the long term, the immediate focus is on taking decisive action to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.”
Ms Verheijen listed government’s power sector priorities to include the Presidential Metering Initiative (PMI) to accelerate the nationwide rollout of seven million prepaid meters to put an end to the practice of estimated billing and ensure transparency in electricity charges.
She added that metering would also improve revenue collection across the sector and attract the investments needed to strengthen Nigeria’s power infrastructure.
She added that targeted electricity subsidies to ensure that low-income households receive the most support and also make electricity more affordable and accessible for millions of hardworking families.
She said this would be a departure from the prevailing monthly electricity subsidy budget of over ₦200 billion much of which, she claims, benefits the wealthiest 25 percent of Nigerians rather than those who truly need assistance.
On settlement of legacy power debt, Mrs Verheijen stated that government was addressing the mounting debts owed to power generation companies which, according to her, remain one of the major roadblocks to improved service.
“For years, these debts have prevented investments in new infrastructure and hampered efforts to improve electricity supply. By clearing these outstanding obligations, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians.”
She also declared that government was reducing costs for alternative power generation such as Compressed Natural Gas and Liquified Petroleum Gas through a range of fiscal incentives, including VAT and Customs Duty Waivers.
“The government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s daily lives,” she said, adding that “every policy is designed with the Nigerian people in mind — eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity.”
She said “these reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians.”
