Fawaz Adebisi
The Nigeria Electricity Regulatory Commission, NERC has told the Federal Government and National Assembly that a sum of N3.2trn needs to be provided to subsidize electricity in the country.
The NERC chairman, Sanusi Garba, on Thursday, made this statement in Abuja at a stakeholders meeting convened by the House of Representatives Committee on Power.
According to the Garba, the increment of electricity tariff for some users is necessary, except if the government can provide a sum of N3.2trn to subsidize power supply.
In his words, the recent review in tariff, distribution companies were only obligated to pay 10 per cent of their energy invoice, stressing that the lack of cash backing is creating a liquidity challenge in the sector.
He added that if a total sectoral overhauling was not carried out, including fluctuation in foreign exchange, power supply in Nigeria would continue to pose a challenge.
He said, “If sitting back and doing nothing is the way to go, it would mean that the National Assembly and the Executive would have to provide about N3.2 trillion to pay for subsidy in 2024.”
The Vice Chairman of NERC, Musiliu Oseni, who also justified the recent increase in tariff said the increment was needed to save the sector from total shutdown.
Recall that the NERC said Band A users will experience increase in their electricity fee as it rose to 225 kilowatts per hour, from the previous fee of ₦66.
Band A users are those who enjoy electricity supply for 20 hours per day.
Also, it added that it has downgraded some customers on Band A to Band B due to non-fulfilment of the required hours of electricity provided by the electricity distribution company.
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