The Nigerian government is resolute on maintaining electricity subsidies in the face of mounting pressure for tariff hikes within the Nigeria Electricity Supply Industry.
In a statement shared on his official social media account, Minister of Power, Adebayo Adelabu, affirmed the government’s commitment to evaluating the implementation of a reflective electricity tariff. Emphasizing President Bola Ahmed Tinubu’s vision for the power sector, the minister stressed the necessity of taking decisive measures to improve distribution and transmission infrastructures.
Acknowledging the persistent challenge of liquidity within the electricity market, Adelabu stated, “The lack of liquidity remains a significant challenge in the electricity market. We’re reviewing the implementation process of a cost-reflective tariff while ensuring continued government subsidy for vulnerable members of society.”
This declaration follows reports of an imminent nationwide electricity tariff hike. However, the Nigeria Electricity Regulatory Agency (NERC) has dispelled speculations by confirming that no directive for an electricity tariff increase commencing January 1, 2024, has been issued to electricity distribution companies.
NERC’s quarterly reports revealed substantial spending on electricity subsidies, amounting to N204.59 billion in the third quarter of 2023 and N135.23 billion in the second quarter, notably surging from the N36.02 billion recorded in the first quarter of 2023.
