Nigerian Minister of Power, Adebayo Adelabu has revealed that about 12 million are electricity consumers and the new tariff rise will only affect 1.5 million of them, adding that the remaining 10.5 million will continue to enjoy government’s subsidy, which is about 70 per cent of the population.
Adelabu who made this known at the Ministerial Press Briefing Series host by the Minister of Information and National Orientation, Mohammed Idris in Abuja on Friday, said the recent increase in tariff affected only a small percentage of the country’s population.
It was reported on Thursday that the Nigerian Electricity Regulatory Commission (NERC) announced an increase in electricity tariff paid by Band A customers from N68/KWh to N225KWh, while these customers are those who enjoy electricity supply for 20 to 24 hours per day.
According to the Minister, “This tariff review is in conformity with our policy thrust of maintaining a subsidised pricing regime in the short run or short term with transition plan to achieve a full cost reflective tariff for over a period of, let us say three years.
“We are not ready to aggravate the sufferings any longer which is why we said it must be a journey rather than a destination and the journey starts from now on, that we should do a gradual migration from subsidy regime to a full cost reflective regime and we must start with some customers”, he said.
Adelabu disclosed that the government was formerly subsidising 67 percent of the cost of electricity with the provision of a large portion of the generation, transmission and distribution cost, saying government would have paid N2.9trillion for 2024.
“This is more than 10 percent of the national budget. It will be insensitive on our part to compel the government to pay such subsidy when we have other competing issues the government needs to fund under pau its of funds we have”, the Minister said.
In his opening remarks, the Minister of Information and National Orientation who affirmed some salient achievements taken place in the Nigeria’s economy through the implementation of some macroeconomic reforms, recalled how government unveiled a progressive policy in the power sector, which aims to boost sufficiency in power supply for all Nigerians.
He buttressed Adelabu’s presentation by saying the policy of the administration is to sustaining electricity subsidy to 85% of Nigerian consumers, which re-justifies its credential as a Pro-People democratic govt while effecting electricity tariff increment to only 15% of the electricity consumer population.
Idris said, “Misconceptions and concerns around the tariff review are understandable. However, let me reassure every Nigerian that this review is a strategic step toward a more sustainable, efficient, and equitable electricity sector.
Adding that, “It lays the groundwork for significant improvements in service delivery, infrastructure development, and economic prosperity. Our focus must therefore remain steadfast on ensuring that electricity sector’s transformation benefits Nigerians, supports our industries, and propels our nation towards its bright future”.