FG confirms subsidizing electricity consumption of 85% of Nigerians

Ilenre Irele

The Federal Government has disclosed that about 85 per cent of Nigerians still enjoy the electricity subsidy in the country. This is beside the over N1tn that would be saved from the fresh tariff hike.

This disclosure was made in response to the continued reactions from Nigerians over the increment in electricity tariff recently announced for Band A customers by the Nigerian Electricity Regulatory Commission.

Recall that NERC had on April 3 announced the tariff increase for Band A power consumers from N68 to N225 per kilowatt-hour with immediate effect.
The regulator said the new tariff indicated a removal of electricity subsidy for Band A consumers who form about 15 per cent of the total number of power users across the country.
However, in a statement issued by his Special Assistant (Media), Rabiu Ibrahim, on Saturday, the Minister of Information and National Orientation, Mohammed Idris, said 85 per cent of the Nigerian population who fall under different categorisations.

According to the statement, the minister spoke as a guest of the popular Hausa audience participatory programme of Radio Nigeria Kaduna called “Hannu Da Yawa” in Kaduna on Saturday.
He said the disproportionate amount of electricity subsidy, approximately 40 per cent, was benefiting only about 15 per cent of the electricity consumer population, comprising affluent individuals and industrial clusters, who enjoy about 20 hours of electricity
The statement read in part, “Minister of Information and National Orientation, Mohammed Idris, has said that the over N1tn that would be saved from the withdrawal of electricity subsidy will be reinvested in improving power supply and the provision of social services for the country.
“Idris emphasised that 85 per cent of the population who falls under the different categorisations of the new electricity supply regime still enjoys the subsidy.”
The minister further stated that the new Electricity Act, signed by President Tinubu, had strengthened the governance structure of the Nigerian Electricity Regulatory Commission and empowered the agency to place severe sanctions on electricity distribution companies for infractions relating to billings and supply of electricity to consumers.
The distribution companies with the lowest allocation were Yola Disco at 79MW, Jos Disco at 158MW, Kaduna Disco at 181MW, Kano Disco at 188MW and Port Harcourt Disco at 198MW.