GOVERANCE

FG Pays N3.3bn Annually On Electricity Subsidy

The Federal Government has announced that it pays about ₦3.3 bn in electricity subsidies.

The government stated that its subsidy on electricity tariff has amounted to about ₦1 trillion between 2019 and 2021.

This was disclosed at the 12th edition of the PwC Nigeria’s Annual Power and Utilities Roundtable on Thursday.

Speaking at the event, Ahmad Zakari, Special Adviser to the President on Infrastructure, emphasised that the country needs to optimise the potentials in the power sector through a cost-reflective tariff regime.

“We need a holistic review; the first thing is regulatory and policy alignment. Through this measure by the government, we can eliminate the gap in the Service-Based Tariff (SBT),” he stated.

Ahmad explained, “At this time, DISCOs with the revised economic models will be faced with incentives and penalties that would allow them to be able to achieve optimisation. The second phase will now be infrastructure alignment. If the economics of tariff-based works, then infrastructure will be improved”.

While on the discourse, the FG disclosed its plans to re-align its policies, regulations, and activities of the power sector stakeholders to improve electricity supply.

 

Credit: The Electricity Hub

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