GOVERNMENT TO SPENT N3.2 TRN AS ELECTRICITY SUBSIDY IN 2024 IF ELECTRICITY TARIFF IS NOT INCREASED- NERC 18-04-24
By Sadiq Aminu The Chairman of the Nigeria Electricity Regulatory Commission, NERC, Mr. Sanusi Garba says it will take Nigerian government N3.2 trillion as subsidy for the electricity sector in 2024 if the recent increase in tariff is to be reversed.
At a stakeholders meeting organized by the House of Representatives committee on Power, Mr. Garba, explained that the current investments in the power sector was not enough to guarantee steady power supply.
He said if nothing concrete is done to address issues in the sector including foreign exchange Fluctuation and none payment for gas, the sector will be heading for doom.
The Chairman of the NERC explained that prior to the recent review in tarrif, DISCOS were only obligated to pay 10 percent of their energy invoice, adding that the lack of cash backing for subsidy is creating a liquidity challenge in the sector.
He emphasized that as a result of the none payment of subsidy, gas supply and power generation have continued to dip, adding that the continuous decline of generation and system collapse are largely linked to liquidity challenge.
The Vice Chairman of NERC, Musiliu Oseni who also justified the recent increase in tarrif said the increment was needed to save the sector from total shutdown.
The Chairman of the House Committee on Power, Victor Nwokolo said the essence of the meeting was to address the recent increase in tarrif and the issue of band A and others.
Mr. Nwokolo said the officials of NERC and DISCOS have given the committee useful Information that would help to address some of the challenges in power sector.