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Business

Minister says FG spends over N50 billion to subsidise electricity in the country

Power Minister has disclosed that the FG spends over N50 billion to subsidise costs in the country’s electricity supply.

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The Minister of Power, Mr Sale Mamman has stated that the Federal Government spends over N50 billion in subsidizing electricity supply in the country.

This was disclosed in a statement delivered by the Special Adviser, Media and Communications to the Minister, Mr Aaron Artimas, while receiving delegates of the Guild of Actors and Film Producers, otherwise known as, Kannywood in his office.

Artimas quoted the Minister as stating that the FG subsidizes the costs due to the rising costs of power in Nigeria, citing the subsidies are provided to support the DisCos.

READ: Daystar plans to raise $100m for West African solar projects

“Worried by the incessant complaints by ordinary Nigerians over the unavoidable and periodic increase in the cost of electricity, the Federal Government has been subsidising electricity supply in the country to the tune of over N50 billion.

“The funds are provided to augment the shortfall by the Distribution Companies (DiSCos) who have failed to defray the cost of bulk electricity supplied to them by the Generating Companies.

“However, following a minor increase in the tariff regime, the subsidy has now decreased by half, but still constitutes a serious drain on the nation’s economy,” Mamman stated.

READ: How to reduce your electricity bill in Lagos

The Minister added that the DisCos were privatised before Buhari’s administration came to power. He also stated that “the government has no alternative than to continue managing the sector before a final solution is secured.”

“Through the Presidential Power Initiative and other intervention measures, the government is diligently working to massively resolve all these inherited problems that have continuously frustrated the success of the sector,” he added.

READ: Nigerians are taking over expatriates’ jobs in oil & gas sector – Petroleum Minister

In case you missed it

  • Recall Nairametrics reported that the World Bank approved $500 million to support Nigeria in improving electricity distribution in the country.
  • The Nigerian Electricity Regulatory Commission (NERC) also announced that only 62.63% of electric customers in Nigeria were under the estimated billing package as at September 2020.

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