By Sunday Etuka, Abuja
The Minister of Power, Chief Adebayo Adelabu has disclosed the plan of the Federal Government to increase the electricity tariffs of all bands of customers.
Chief Adebayo dropped the hint on Friday while briefing an audience in Abuja.
This is coming barely two days after the the Nigerian Electricity Regulatory Commission (NERC) increased the tariff of Band A customers -those who have the financial muscles to enjoy 20 hours and above of electricity supply.
He disclosed that there is a transition plan to achieve a full cost reflective tariffs over a three year period.
“This tariff review is in conformity with our policy thrust of maintaining a subsidized pricing regime in the short run or the short term with a transition plan to achieve a full cost reflective tariff for over a period of, let us say three years. I have mentioned it in a couple of media briefings that it is because of government sensitivity to the pains of our people that we will not make us migrate fully into a cost reflective tariff or to remove subsidy 100 percent in the power sector like it was done in oil and gas sector”, the Minister said
He further hinted that the increment was being done in phases in order not to add to the sufferings of Nigerians
“We are not ready to aggravate the sufferings any longer which is why we said it must be a journey rather than a destination and the journey starts from now on, that we should do a gradual migration from the subsidy regime to a full cost reflective regime and we must start with some customers.
“This is more like a pilot for us at the Ministry of Power and our agencies. It is like a proof of concept that those that have the infrastructure sufficient enough to deliver stable power of enjoying 20 hours of light to be the ones to get tariff add”, he said.
He explained that if not for the increment, “the government would have paid N2.9 trllion for 2024. This is more than 10 percent of the national budget. It will be insensitive on our part to compel the government to pay such subsidy when we have other competing issues the government needs to fund under pau its of funds we have.”
