The federal government has insisted on electricity subsidies amid calls for tariff hikes in the Nigeria Electricity Supply Industry.
The Minister of Power, Adebayo Adelabu, disclosed this in a statement on his official X handle on Monday, noting that the federal government was reviewing the implementation of a reflective electricity tariff.
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The minister reiterated President Bola Ahmed Tinubu’s agenda for electricity by taking decisive action to enhance distribution and transmission infrastructures.
However, Adelabu admitted that lack of liquidity remained a significant challenge in the electricity market.
“The lack of liquidity remains a significant challenge in the electricity market.
“We’re reviewing the implementation process of a cost-reflective tariff while ensuring continued government subsidy for vulnerable members of society”, he said.
The development comes amid a report of an impending electricity tariff hike nationwide. However, the Nigeria Electricity Regulatory Agency, NERC, has clarified that it has not issued any order to electricity distribution companies on a purported electricity tariff hike starting January 1, 2024.
NERC’s quarterly reports indicated that electricity subsidies gulped N204.59 billion in the third quarter of 2023 and N135.23 billion in Q2, substantially higher than the N36.02 billion in Q1 2023.