FG Complains About Using 10% Of The Nation’s Budget To Subsidize Electricity For Nigerians

Nigeria’s Federal Government has claimed that the country’s current subsidy scheme has forced it to pass on 67% of the total cost of power production, transmission, and distribution to residents.
“The subsidies consume more than ten percent of the national budget. This is a drain on the country’s limited revenue.”
Chief Adebayo Adelabu, Minister of Power, stated these observations during the Ministerial press briefing on Friday, April 5, in Abuja, which was hosted by Alhaji Mohammed Idris, Minister of Information and National Orientation.
The Power Minister stated that the latest rise in electricity tariffs was only for consumers in the Band A category, “which is only 15% of consumers, while other customers will continue to enjoy the government subsidy.”

According to the Minister, the ministry is considering implementing a cost-reflective tariff and gradually transitioning other users to the band A grade over the next three years.

“These consumers will enjoy 20 to 24 hours of electricity per day, and it is realistically cheaper at N225 per kilowatt than diesel and generating sets.”
Chief Adelabu said that the power sector currently needs to be more attractive to investors, complaining that there is an infrastructure deficit, which includes the availability of gas and the generation, transmission, and distribution of power. “These must be addressed for the sector to grow and benefit Nigerians.”

He stated that a metering gap must be crossed, and that all of the difficulties raised can only be handled by raising finances.
The minister stated that the industry has been decentralized, consumer protection is critical, and the promised 20 hours must be met.

“Anything else would attract consequences for the distribution company.”

He urged Nigerians to learn about energy consumption management in order to get the most out of their money.
He stated that the Ministry is ramping up generation, such as renewable energy and the Zungeru projects, as well as working hard to develop creative ways to reduce vandalism by building new lines, injecting lines, and investing in consumer education.
This was despite the minister of information’s vow to provide Nigerians with essential information on the government at all times.

He assured the media that the Federal Ministry of Information and National Orientation would continue to offer accurate and timely information on government initiatives.
Due to citizen concerns, the Minister underlined the urgent need for the Ministry of Power to educate Nigerians on the recent review of the tariff structure in the power sector.

He thanked the media for its sustained support of the Renewed Hope Agenda and emphasized the Power Sector’s importance to the activities of all other sectors in society.

According to Idris, the government does not want to exacerbate Nigerians’ misery by eliminating petrol subsidies, floating the Naira, and raising the country’s inflation rate.
He highlighted, however, the need for the government to revamp the power sector, and that the administration has taken the bold step of beginning the process.
He begged for patience and understanding as the government works to address the fundamental cause of the Power Sector’s challenges in order to provide consumers with the service they expect.