FG subsidizes 67% of power production, transmission, distribution – Adelabu

Juliet Anine
2 Min Read

The Minister of Power, Adebayo Adelabu, has disclosed that despite the removal of subsidies for Band A electricity customers, the federal government continues to subsidize 67 percent of the cost of power production, transmission, and distribution in Nigeria.

Speaking recently, Minister Adelabu highlighted the country’s ongoing subsidy regime, where the government shoulders a significant portion of the expenses related to power infrastructure. He noted that this subsidy places a strain on the country’s finances, constituting more than 10 percent of the National budget.

“This is a burden on the country’s meager revenue,” he emphasized.

Adelabu emphasized the government’s commitment to alleviating the suffering of Nigerians, particularly amidst the removal of subsidies on petrol and other economic challenges. He underscored the need for an overhaul of the power sector, reassuring Nigerians of the government’s determination to address the root causes of power sector challenges and provide improved services.

“The Ministry is determined to keep its promise to Nigerians on the issue of electricity,” Adelabu stated.

Regarding recent tariff increases, Minister Adelabu clarified that the increase applies solely to consumers in the Band A category, which comprises only 15 percent of consumers. Other customers will continue to benefit from government subsidies.

Furthermore, Adelabu outlined the ministry’s plans to implement a cost-reflective tariff and gradually transition other consumers to the Band A grade over three years. These consumers will enjoy extended hours of electricity daily, making it a more economical option compared to alternative power sources.

To attract investors and address infrastructure deficits in the sector, Minister Adelabu emphasized the need for increased investment and improved consumer protection. He urged Nigerians to manage their energy consumption efficiently while assuring ongoing efforts by the ministry to enhance power generation and curb vandalism through innovative strategies.

“The Ministry is also working hard to find creative ways to cut vandalism while installing new lines and injection lines and investing in advocacy to educate consumers,” he added.

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