More difficult times await Nigerians in the months ahead as the Federal Government yesterday announced it is ending the N30 billion monthly electricity subsidy by January 2022. The decision is also to affect all forms of subsidies hitherto extended to operators in the power sector value chain.
The Special Adviser to the President on infrastructure, Ahmed Zakari, disclosed this at a stakeholders’ engagement meeting, organised by the Nigerian Electricity Commission (NERC) in Lagos.
Vice President Yemi Osinbajo, had last July said the government expected the electricity sector to generate its revenue from the power sector market.
The VP noted that government would be investing over N43 billion in the coming years to improve transmission and distribution infrastructure across the country.
The power industry in Nigeria has reportedly been bugged down by claims of revenue shortfall allegedly due to a tariff regime that is “not cost reflective.” Data from the Nigerian Bulk Electricity Trading Plc (NBET) shows that the tariff being collected by DisCos is below 50 per cent of their invoices.
The Association of Nigerian Electricity Distributors (ANED) had consistently lamented that the absence of of a cost reflective remained one of the major setbacks confronting the sector.
