The federal government is standing firm on maintaining electricity subsidies, countering calls for tariff increases in the Nigeria Electricity Supply Industry. Minister of Power, Adebayo Adelabu, affirmed this stance in a statement shared on his official handle on Monday. He stated that the government is currently reassessing the implementation of a reflective electricity tariff.
In alignment with President Bola Ahmed Tinubu’s agenda for the electricity sector, Minister Adelabu emphasized the administration’s commitment to taking decisive measures to enhance distribution and transmission infrastructures.
Acknowledging the prevailing challenge of liquidity in the electricity market, Adelabu addressed the issue. He 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.”
Despite reports suggesting an imminent nationwide electricity tariff hike, the Nigeria Electricity Regulatory Agency (NERC) clarified that it has not issued any directive to electricity distribution companies regarding such an increase starting January 1, 2024.
NERC’s quarterly reports disclosed substantial expenditures on electricity subsidies, amounting to N204.59 billion in the third quarter of 2023 and N135.23 billion in Q2, significantly surpassing the N36.02 billion recorded in Q1 2023.