FG unveils power sector reforms: 7 million smart meters, targeted subsidies, debt clearance

By Kunle Sanni

The Federal Government has outlined its strategic priorities for the power sector, focusing on expanding metering, reducing debt, and protecting the nation’s most vulnerable citizens.

This announcement follows clarifications on recent media reports suggesting an imminent 65% increase in electricity tariffs.

According to a statement by Olu Verheijen, Special Adviser to the President on Energy, the government plans to deploy seven million prepaid meters nationwide starting this year.

This initiative aims to eliminate estimated billing, ensuring consumers receive accurate and transparent electricity charges. Widespread metering is expected to boost revenue collection and attract much-needed investments to strengthen Nigeria’s power infrastructure.

The government has also revealed it committed over ₦200 billion monthly to electricity subsidies. However, it noted that a disproportionate share of this support currently benefits the wealthiest 25% of Nigerians.

To correct this imbalance, a new targeted subsidy system is being developed to ensure low-income households receive the most support, making electricity more affordable for millions of hardworking families.

The administration is also addressing the substantial debts owed to power generation companies, which have historically hindered investments in new infrastructure and improvements in electricity supply.

By settling these outstanding obligations, the government aims to enhance service delivery, strengthen infrastructure, and create a more stable electricity supply for all Nigerians.

Furthermore, to lower the cost of alternative energy sources, the government is introducing fiscal incentives, including VAT and Customs Duty waivers, on Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG). These measures are designed to provide more affordable and sustainable energy options for consumers.

With these initiatives, the Federal Government remains committed to implementing reforms that eliminate unfair billing practices, direct subsidies to those most in need, and create the conditions for stable, affordable electricity.

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