Federal Government will continue to subsidise electricity for Nigerians to guarantee stable and reliable supply. Mr, Adebayo Adelabu, the Minister of Power said.
Adelabu made it known at the Ministerial Press Briefing Series organised by the Ministry of Information and National Orientation on Friday in Abuja.
Adelabu said, the hike in tariff will only affects little percentage of the country’s populace, and majority of Nigerians will continue to enjoy governments subsidy.
The News Agency of Nigeria (NAN) reports that the Nigerian Electricity Regulatory Commission (NERC) had announced an increase in electricity tariff paid by Band A customers from N68/KWh to N225KWh.
NAN also reports that Band A customers are those who enjoy electricity supply for 20 hours per day.
‘”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 will continue to enjoy government’s subsidy ,which is almost 70 per cent 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 minister said that before the tariff increase ,government was subsidising the cost of producing and transmitting electricity in the country by more than 50 per cent.
He said the government decided not to switch to a cost reflective tariff or abolish subsidy 100 per cent because it was sensitive to the pains being experienced by Nigerians presently.
He said abolishment of subsidy would be a journey rather than destination and that it would be a gradual transition from subsidy regime to a fully cost reflective tariff regime.
