75% consumers will continue to enjoy electricity subsidy, says FG

75% consumers will continue to enjoy electricity subsidy, says FG

The Federal Government has said it will continue to subsidise the cost of electricity supply to 75 per cent of the consumers in the country.

Minister of Power, Adebayo Adelabu, stated this in Abuja on Friday during a ministerial press briefing organised by the Ministry of Information to highlight President Bola Tinubu’s Renewed Hope Agenda for the power sector.

This came following the public outcry against the recent over 200 per cent increase in the electricity tariff for consumers on Band A.

Adelabu said those currently affected by the Band A tariff increase enjoying between 20 and 24 hours of electricity supply daily had been found to be capable of paying the new tariff.

He said customers on Band A were before the latest hike enjoying 70 per cent of the over N1.4 trillion subsidy paid by the government for electricity supply nationwide.

“We know the inflation rate is there, devaluation is there and the devaluation of the naira is also there, and government is aware of all these but the removal of subsidy is necessary pains that people will face to come out of those hardships.

“Reforms come with necessary pains but joy comes after the fixing have been achieved,” Adelabu said.

He stressed that government was subsidising 67 per cent of the cost of generating, transmitting and distributing power in Nigeria, amounting to over N3 trillion, which he put at 10 per cent of government total revenue.

The minister said, “I assure you that aside Band A customers who are just about 1.5 million, the remaining 10 million customers will continue to enjoy government subsidy of about 70 per cent.

“We have also established that these 15 per cent customers are willing to pay for the 20 to 24 hours of electricity supply they get.”