The Minister of Power, Adebayo Adelabu, has disclosed that despite the removal of subsidy for Band A electricity customers, the federal government continues to subsidize 67 per cent of the cost of power production, transmission, and distribution in Nigeria. This revelation comes in the wake of the recent 240 per cent tariff hike for Band A customers, aimed at reducing the sector’s subsidy cost.
Addressing the issue over the weekend, Minister Adelabu highlighted Nigeria’s ongoing subsidy regime, wherein the government covers a significant portion of the expenses related to power production, transmission, and distribution. This substantial subsidy accounts for more than 10 percent of the National budget and places a burden on the country’s already strained revenue.
Adelabu stressed that amid the removal of subsidies on petrol, the floating of the Naira, and the prevailing inflation rate, the government is keen to avoid further exacerbating the hardship faced by Nigerians. He underscored the need for a comprehensive overhaul of the power sector, indicating that the present administration has embarked on this journey.
Calling for patience and understanding, the Minister emphasized the importance of addressing the root causes of the power sector’s challenges to provide consumers with the desired service. He urged stakeholders to cooperate with the government as it works towards improving the efficiency and reliability of the power supply across the nation.
The statement from Minister Adelabu comes amidst ongoing efforts to revitalize the power sector and enhance its performance to meet the growing demands of Nigeria’s populace. As the government navigates the complexities of subsidy removal and tariff adjustments, the focus remains on achieving sustainable solutions that benefit all stakeholders involved.
