Nigeria Spends N1.7tr on Electricity Subsidy – Buhari
President Muhammadu Buhari, yesterday, disclosed that the Federal Government has spent about N1.7 trillion to supplement electricity tariff shortfalls in a bid to keep the sector alive.
This was coming amid expressing displeasure that a sector privatised was still enjoying subsidy from the Federal Government.
The industry support figure was contained in the President’s address at the first year ministerial performance review retreat held at the State House Conference Centre, Abuja.
The President explained that the problems associated with the power sector privatization exercise informed the decision of government to keep supporting the largely privatised electricity industry.
‘‘We do not have the resources at this point to continue in this way and it will be grossly irresponsible to borrow to subsidise a generation and distribution which are both privatised. But we also have a duty to ensure that the large majority of those who cannot afford to pay cost reflective tariffs are protected from increases.
“NERC, the industry regulator, therefore, approved that tariff adjustments had to be made but only on the basis of guaranteed improvement in service. Under this new arrangement, only customers who are guaranteed a minimum of 12hours of power and above can have their tariffs adjusted.
“Those who get less than 12 hours supply or the Band D and E Customers must be maintained on lifeline tariffs, meaning that they will experience no increase. This is the largest group of customers.’’ Buhari noted that government has also taken notice of the complaints about arbitrary estimated billing and has accordingly, ordered a mass metering programme to provide meters for over five million Nigerians, largely driven by preferred procurement from local manufacturers – creating thousands of jobs in the process.
He equally gave assurance that there would no longer be estimated billings because NERC has committed to strictly enforcing the capping regulation which will ensure that unmetered customers are not charged beyond the metered customers in their neighbourhood.
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