FG Maintains Electricity Subsidy Amid Tariff Review

The Federal Government has announced its decision to maintain electricity subsidies, despite recent calls for a tariff hike.

This news comes as the government continues to review the implementation of a cost-reflective electricity tariff, while also ensuring continued support for vulnerable members of society.

The Minister of Power, Adebayo Adelabu, stated that the government’s primary focus is enhancing distribution and transmission infrastructure to minimise technical and commercial losses.

He also acknowledged that the lack of liquidity remains a significant challenge in the electricity market.

According to the Nigerian Electricity Regulatory Commission, electricity subsidies consumed N204.59 billion in Q3 of 2023 and N135.23 billion in Q2, which is higher than the N600 billion in subsidies during some period in 2023.

This indicates the government’s commitment to providing affordable electricity to its citizens.

The DisCos, however, have debunked the rumours of an impending electricity hike, stating that no such plans have been approved.

The current electricity tariff order remains unchanged.

As the government continues to prioritize electricity subsidies, it remains to be seen how this decision will impact the overall electricity market and the Nigerian economy.