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FG still paying electricity subsidy despite band tariff hike — Adelabu

The Minister of Power, Adebayo Adelabu, said the Federal Government is still paying subsidy on electricity despite the recent hike in tariff paid by Band A customers.



Adelabu stated this in an interview on Channels Television’s Politics Today on Thursday.The minister said the government has about N1.8trn to pay in electricity subsidy for 2024.

He said, “Review of tariff is actually legal once it is within the exclusive responsibility of the Nigerian Electricity Regulatory Commission (NERC). The Act actually provides for review twice in a year, every six months.”


“If we have been paying the tariff at the same level in the last two years, it logically means that someone has been paying the burden of all these increases.


“As it is today, looking at a total production, transmission and distribution cost, the Nigerian Government is bearing 67% percent of that cost before the increase in tariff for Band A customers.


“But when you look at generation cost, the Nigerian Government is paying 90% but in terms of total subsidy, it is about 67% of subsidy on the tariff.


“Last year, it was about N720bn which was not fully funded, we have about N305bn carried into this year. 

If we retain tariff at the current level, the Nigerian Government will be needing about N2.9trn to subsidise electricity but with the increase for Band A customers, we are going to have a reduction of about N1.1trn. 

So, we are looking at about N1.8trn in subsidy,” he said.



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