Minister of Power, Adebayo Adelabu, has made a bold statement regarding the recent electricity tariff hike in Nigeria. During a ministerial briefing in Abuja, Adelabu emphasized the government’s decision to gradually remove the 100 per cent electricity subsidy, stating that it would have been insensitive to continue providing full subsidies in light of the country’s financial burden.
The recent tariff hike, which primarily affects customers receiving 20-24 hours of power supply, aims to address the liquidity issues plaguing the power sector. Adelabu highlighted that 85 per cent of electricity consumers will still receive Federal Government subsidies, easing the financial strain on the majority of the population.
With an estimated N2.9 trillion electricity subsidy in 2024, Adelabu stressed that the government cannot sustain such a heavy financial burden. He clarified that only 15 per cent of electricity customers, approximately 1.5 million individuals, will be impacted by the recent tariff adjustment.
Adelabu reassured the public that the government’s decision to gradually remove the subsidy for selected customers is a strategic move to ensure financial sustainability in the power sector. He emphasized the government’s sensitivity towards the issue, stating that the gradual removal of subsidies is a necessary step towards achieving long-term stability.
The Nigerian Electricity Regulatory Commission (NERC) recently approved a tariff hike for Band A customers, signaling a shift towards a more sustainable electricity pricing structure. Adelabu’s remarks shed light on the government’s commitment to addressing the challenges facing the power sector while balancing the needs of both consumers and the economy.
In conclusion, Adelabu’s stance on the electricity subsidy issue reflects a pragmatic approach towards ensuring the long-term viability of Nigeria’s power sector. By gradually phasing out subsidies for selected customers, the government aims to strike a balance between financial sustainability and consumer affordability, ultimately paving the way for a more stable and efficient electricity system.
