• Sunday, May 26, 2024
businessday logo


FG Says 85% of Nigerians retain electricity subsidy despite tariff hike

The Federal Government has clarified that the recent electricity tariff hike only affects a small, wealthy segment of the population. In a statement, Information Minister Mohammed Idris assured that 85% of Nigerians will continue to benefit from electricity subsidies.

This clarification comes after the Nigerian Electricity Regulatory Commission (NERC) announced a significant rise in tariffs for Band A customers, from N68 to N225 per kilowatt-hour. Band A represents roughly 15% of electricity consumers, typically those with access to reliable power supply.

According to Idris, the removed subsidy disproportionately benefitted this wealthy segment, consuming around 40% of the subsidy while receiving longer electricity availability (around 20 hours). The recovered funds, estimated at over N1 trillion, will be reinvested in improving the national grid and social services.

Idris also emphasized the importance of the recently signed Electricity Act. This act strengthens the NERC’s authority to enforce regulations and impose penalties on electricity distribution companies for billing irregularities and inadequate service delivery.