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Saturday 19th June 2021,
Hope for Nigeria

Subsidy on electricity not necessary – FG


The Federal Government has said it is not right to continue to subsidise electricity consumption by the citizens.

According to the government, the power sector has been characterised by a series of challenges that require huge financial commitment.

The Minister of Power, Prof. Chinedu Nebo, who stated this, explained that the fixing of electricity tariff had been mired in a lot of problems.

He stressed that it was unnecessary to subsidise power consumption in the country during an interactive session with Civil Society Organisations as part of the Power Summit held in Abuja on Friday, according to a statement obtained by our correspondent on Sunday.

Nebo said, “We’ve had problems with regards to tariffs. Some of us, including myself, are being subsidised, and that ought not to be. The government is doing a lot in order to improve the power sector and I think it is time for the civil society to let the public know what we are doing.

“Civic engagement like this provides an opportunity for Nigerians to actively take ownership of the reforms, while helping to promote the attitudinal changes necessary for reflective power supply, usage and consumption.”

The minister’s remarks confirmed reports that the Federal Government might stop subsiding low income power consumers anytime soon.

The PUNCH had in October last year reported that the government was planning to discontinue the provision for subsidy on electricity for low income consumers beginning from this year.

This, according to the Nigerian Electricity Regulatory Commission, will affect low income consumers in the Residential1 and 2 categories as well as those in the Commercial1 cadre.

The General Manager, Government and Consumer Affairs, NERC, Dr. Tony Akah, had said the subsidy funds would be channelled into other priority areas such as provision of electricity to  rural communities in line with the government’s rural electrification programme.

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