The Senate has rejected plans by the Ministry of Power to increase electricity tariff. The upper chamber kicked against plans to remove subsidy from electricity given the present hardship in the country.
This resolution of the Senate is coming in consideration and approval of a motion moved by Senator Aminu Abbas (PDP, Adamawa Central) during plenary on the need to retain subsidy on electricity in the country for the near future.
While speaking at a press conference in Abuja last week, the Minister of Power, Adebayo Adelabu, revealed that Nigeria was not likely to sustain the current electricity subsidy.
Adelabu noted that the indebtedness of the country’s power sector to electricity-generating companies and gas companies had increased to over N3 trillion.
“Today, we owe a total of N1.3tn to the power generating companies, out of which 60 per cent is owed to gas suppliers. Today we have a legacy debt, before 2014, to the gas companies of $1.3bn; at today’s rate, that is close to N2 trillion.” He added.
It was gathered that the Senate’s spokesperson, Yemi Adraamodu, stated that it would not allow any increase in the price of electricity that may worsen the hardship of Nigerians across the country.
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