N2.9tr yearly electricity subsidy insensitive—FG

The federal government has described as insensitive that the sum of N2.9 trillion yearly electricity subsidy, noting that the policy is unsustainable due to infrastructure deficit and lack of liquidity in Nigeria’s power sector.

The Minister of Power, Mr Adebayo Adelabu disclosed his at a Press Conference held on Friday at the international Press Centre in FCT, Abuja, while responding to rejection of the new electricity tariff regime.

He said the humongous sum is more than 10 per cent of the national budget, emphasizing that only 15 per cent of electricity users in Band A, which he said will make the electricity value-chain cost effective compared to the cost of running diesel propelled mechanical equipment.

The Minister said the remaining pay the new N225/KW of the recent hike, while the remaining 85 per cent of electricity users are not affected in the price regime.

N2.9 trillion is more than 10 per cent of the nation’s budget”, according to him, “It will be very insensitive on oir part to continue to compel Government to subsidize electricity for N2.9 trillion. We just need to show understanding and be realistic”.

Adelabu however assured that the federal government will monitor and the pilot scheme and hold electricity service providers accountable.

The Minister called on Nigerians to show understanding and support the power sector reform of President Bola Tinubu.

He stated that the current pains the harsh policies of the government has taken are necessary for development in view of decay infrastructure and over 60 per cent of households that are not yet metered.

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