Nigeria electricity subsidy payment hits N50bn monthly

Nigeria electricity subsidy payment hits N50bn monthly

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The Nigeria Government has it pays over N50 billion monthly to subsidise electricity for Nigerians, amid growing concerns by Nigerians over epileptic power supply.

The intervention, according to the Minister of Power, Mr. Sale Mamman, is to enable distribution Companies in the nation to stabilise their operations to meet their financial obligations to other players in the sector.

He revealed that the funds are provided to augment the shortfall by the Distribution Companies (DiSCos) who have failed to defray the cost of bulk electricity supplied to them by the Generating Companies.

Mr. Aaron Artimas, the Special Adviser, Media and Communications to the minister, said this on Tuesday in a statement in Abuja when he he received the Guild of Actors and Film Producers, otherwise known as, Kannywood in his office.

“Worried by the incessant complaints by ordinary Nigerians over the unavoidable and periodic increase in the cost of electricity, the Federal Government has been subsidising electricity supply in the country to the tune of over N50 billion.

“The funds are provided to augment the shortfall by the Distribution Companies (DiSCos) who have failed to defray the cost of bulk electricity supplied to them by the Generating Companies.

“However, following a minor increase in the tariff regime, the subsidy has now decreased by half, but still constitutes a serious drain on the nation’s economy,” he said.

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The minister, regretted that while some of these problems persisted, remarkable performance and progress had been achieved by the federal government, as the supply of electricity had stabilised at over 5,000 megawatts.

He said, the 5,000 megawatts were up from less than 4,000 megawatts before President Muhammadu Buhari came to power, adding that Nigerians now enjoy a stable power supply from 15 to 24 hours daily.

He however, blamed the shortfall or interruptions on supply to some quarters on faulty equipment and supply lines and called on users to report such developments to their distribution offices.

He noted that it was the responsibility of the DisCos to replace faulty transformers, electricity poles, and cables whenever they occur.

Speaking on metering, Mamman explained that although it was the responsibility of the DisCos to provide the meters, the federal government has stepped-in because of the public outcry overestimated billings.

He said out of the six million meters free of charge to Nigerians the federal Government intend to provide, about one million meters have already been delivered for distribution.

He called on the DisCos to expedite the distribution of meters free of charge to their consumers as a way of lessening their problems.

The Head of the Kannywood Producers and Actors, Mr Mandawari Ibrahim, had lamented the communication gap between the led and the governed and other issues of concern.

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