In a recent address in Abuja, Minister of Power, Adebayo Adelabu, dismissed suggestions for the complete removal of electricity subsidies, emphasizing the current economic challenges faced by Nigerians. The Minister addressed heads of departments of agencies in the power industry, outlining a new policy document to be adopted by them.
Minister Adelabu highlighted the prevailing difficult circumstances in the country, citing factors such as high inflation, currency devaluation, and the recent removal of petroleum subsidies. He stressed that amidst these hardships, it would be insensitive to consider eliminating electricity subsidies entirely.
“We’re in a very difficult situation in the country as it is today. A lot of people are passing through hardships resulting from the high inflation of almost 30 per cent; resulting from the devaluation of naira; resulting from the petroleum subsidy removal,” the Minister stated.
Acknowledging the widespread impact of these economic challenges, Minister Adelabu firmly rejected calls for the total removal of electricity subsidies. Instead, he proposed a gradual transition over a two to three-year roadmap towards a cost-reflective tariff system, ensuring that government subsidies would persist but diminish gradually over time.
“It will sound highly insensitive to the feelings of our people. So, what we intend to have in the policy is a roadmap. Probably two to three years roadmap that will migrate us into a cost reflective tariff, which means that government’s subsidy will remain to the end. We will keep reducing it from time to time,” Minister Adelabu affirmed.
The Minister’s remarks underscored the government’s commitment to balancing economic reforms with the welfare of its citizens, particularly during times of financial strain. The proposed policy aims to navigate the complexities of energy pricing adjustments while safeguarding the interests of the populace.
