At the recent Ministerial Press Briefing Series held in Abuja, Mr. Adebayo Adelabu, the Minister of Power, reiterated the Federal Government of Nigeria’s commitment to ensuring a steady and reliable electricity supply for its citizens.
He emphasized that despite the recent increase in electricity tariffs, the government would continue to provide subsidies to the majority of Nigerians to alleviate the financial burden.
Adelabu highlighted that the recent tariff adjustment primarily affected a small percentage of the population, specifically B and A customers who enjoy electricity supply for 20 hours per day.
He clarified that out of the approximately 12 million customers in the sector, only around 1.5 million would be impacted by the tariff increase.
‘”From the latest statistics, we have about 12 million customers in the sector and this (tariff increase)will only affect about 1.5 million customers.
The remaining 10.5 million customers would continue to benefit from government subsidies, which account for nearly 70% of the population.
”This review is in conformity with our policy thrust of maintaining a subsidised pricing regime in the short run or in the short term with a transition plan to achieving a full cost reflective tariff for the sector over a period of three years,” he said.
The decision to maintain subsidies aligns with the government’s policy objective of sustaining a subsidized pricing regime in the short term, with a gradual transition toward achieving a fully cost-reflective tariff over a three-year period.
Adelabu emphasized that prior to the tariff adjustment, the government subsidized more than 50% of the cost of producing and transmitting electricity in the country.
The minister acknowledged the challenges faced by Nigerians and expressed the government’s sensitivity to their current plight.
He stressed that the decision not to completely migrate to a cost-reflective tariff or eliminate subsidies entirely was driven by a desire to minimize the hardship experienced by the populace.
Adelabu characterized the removal of subsidies as a journey rather than a destination, emphasizing the need for a gradual transition from a subsidy regime to a fully cost-reflective tariff regime.
The Federal Government of Nigeria, under the leadership of Minister Adebayo Adelabu, remains committed to ensuring a stable electricity supply for its citizens while simultaneously balancing the need for economic sustainability and affordability
