The Senate on Wednesday appealed to the federal government to continue the electricity subsidy amidst the ongoing hardships in the country.
The Senate’s decision came after deliberating and endorsing a motion in a plenary session about the necessity of maintaining the electricity subsidy in the country for the coming period.
The motion was brought forward by Aminu Iya Abbas, a PDP Senator representing the Adamawa Central area.
Furthermore, Senator Iya Abbas, along with ten other legislators, raised alarms over the N1.3 trillion debt to power-generating companies and the $1.3 million owed to gas companies by the Ministry of Power.
The Senate also resolved to investigate the involvement of the Ministry of Power, the Nigeria Electricity Regulatory Commission, and Ziglaks Company regarding the unfulfilled agreement to supply prepaid meters, aiming to protect Nigeria from being disadvantaged.
Backstory
- Earlier last week, the Federal Government, made it clear that sustaining the electricity subsidy is now “very difficult,” pointing out the continuous increase in the country’s power debt.
- Adebayo Adelabu, Nigeria’s Minister of Power, stated the necessity for the country to shift towards tariffs that reflect actual costs.
- He revealed debts amounting to N1.3 trillion to electricity generating firms and $1.3 billion to gas providers.
- According to Adelabu, the 2024 budget plans for an electricity subsidy of N450 billion, but he highlighted that the Nigerian Electricity Regulatory Commission’s findings forecast the subsidy expense to soar to N2.9 trillion within the year.