Minister of Power, Mr. Adebayo Adelabu, has affirmed the Federal Government's commitment to subsidizing electricity to ensure stable and reliable supply for Nigerians. Speaking at the Ministerial Press Briefing Series organized by the Ministry of Information and National Orientation in Abuja, Adelabu assured that the recent tariff increase only impacted a small percentage of the population, with the majority continuing to benefit from government subsidy.
According to the News Agency of Nigeria (NAN), the Nigerian Electricity Regulatory Commission (NERC) announced an increase in electricity tariff for Band A customers from N68/KWh to N225/KWh. Band A customers, who receive 20 hours of electricity supply per day, constitute a small fraction of the total customer base, which stands at approximately 12 million.
Adelabu emphasized that the government's policy is to maintain a subsidized pricing regime in the short term, with a transition plan to achieve a fully cost-reflective tariff over three years. He noted that before the tariff increase, the government was subsidizing the cost of producing and transmitting electricity by over 50 percent.
The minister highlighted the government's decision not to fully remove the subsidy or immediately adopt a cost-reflective tariff due to the current challenges faced by Nigerians. He described the removal of subsidy as a gradual journey rather than an immediate destination, indicating a phased approach towards a full cost-reflective tariff regime.
