ARTICLE
20 March 2025

Power Sector News Updates

KN
KPMG Nigeria

Contributor

KPMG Nigeria is a member firm of KPMG International. We provide Audit, Advisory and Tax & Regulatory services, across various industries, to national and multinational companies. Our purpose is to inspire confidence and empower change. We have a relentless focus on delivering quality and excellent service to clients. We, therefore, provide insights and innovative ideas to clients to help them achieve their corporate objectives.
The Special Adviser to the President on Energy, Olu Verheijen, during an interview with Bloomberg in Dar es Salaam, Tanzania. Verheijen stated that the FGN plan to transition to a cost-efficient but cost-reflective tariff, to ensure the sector generates revenue required to attract private capital while also protecting the poor and vulnerable.
Nigeria Energy and Natural Resources

The Special Adviser to the President on Energy, Olu Verheijen, during an interview with Bloomberg in Dar es Salaam, Tanzania. Verheijen stated that the FGN plan to transition to a cost-efficient but cost-reflective tariff, to ensure the sector generates revenue required to attract private capital while also protecting the poor and vulnerable.

Furthermore, she stated that the current tariffs cover approximately 65 per cent of the actual cost of supplying electricity, with the federal government continuing to subsidise the difference.

Over N200 billion is spent monthly 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 implementing a targeted subsidy systemto ensure that low-income households receive the most support. This approach aims to make electricity more affordable and accessible for millions of hardworking families.

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The opinion expressed in this article is solely personal and does not represent the views of any organization or association to which the authors belong.

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