The Nigerian Federal Government has stated that despite the recent tariff increment announced by the Nigerian Electricity Regulatory Commission, about 85% of Nigerians still enjoy electricity subsidy in the country.
Gatekeepers News reports That as per the new tariff plan, the Band A power consumers have to pay N225 per kilowatt-hour, implying a removal of electricity subsidy for this category of consumers, which constitutes about 15% of the total number of power users across the country.
The Minister of Information and National Orientation, Mohammed Idris, made a statement over the weekend that the remaining 85% of the Nigerian population who fall under different categorizations of the new electricity supply regime still continue to enjoy the subsidy.
The minister also mentioned that the electricity subsidy, which accounts for a disproportionate amount of about 40%, is primarily benefiting only the affluent individuals and industrial clusters who enjoy about 20 hours of electricity.
The statement read in part, “Minister of Information and National Orientation, Mohammed Idris, has said that the over N1tn that would be saved from the withdrawal of electricity subsidy will be reinvested in improving power supply and the provision of social services for the country.
“Idris emphasised that 85 per cent of the population who falls under the different categorisations of the new electricity supply regime still enjoys the subsidy.”
The minister further stated that the new Electricity Act, signed by President Tinubu, had strengthened the governance structure of the Nigerian Electricity Regulatory Commission and empowered the agency to place severe sanctions on electricity distribution companies for infractions relating to billings and supply of electricity to consumers.
