Fear Grips Nigerians As FG Ends N30bn Monthly Subsidy, Electricity Tariff May Go Up

Fear Grips Nigerians As FG Ends N30bn Monthly Subsidy, Electricity Tariff May Go Up

  • The Nigerian government has announced its resolve to end its N30 billion monthly electricity subsidy by January 2022
  • Ahmed Zakari, the special adviser to President Muhammadu Buhari on infrastructure, disclosed this in Lagos
  • Following this development, the consumers in the country would have to pay more for electricity from next year

Lagos - The federal government on Monday, September 20, said it would end its N30 billion monthly electricity subsidy by January 2022.

Daily Sun reports that the decision would also affect all forms of subsidies hitherto extended to operators in the power sector value chain.

Electricity tariff may go up in 2023.
FG has said it would end its N30bn monthly subsidy starting from 2022. Credit: Rural Electrification Agency REA.
Source: Facebook

Legit.ng gathered that this was disclosed by the special adviser to the president on infrastructure, Ahmed Zakari, at a stakeholders’ engagement meeting, organised by the Nigerian Electricity Commission (NERC) in Lagos.

Zakari stated that the federal government intends to reduce its interventions in the power sector and thus allow the electricity market forces to determine the course of action.

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Poor power supply causing businesses to fold

The Guardian reports that the Manufacturers Association of Nigeria (MAN) in Cross River and Akwa Ibom states branch identified high cost of tariff and epileptic power supply as major reasons some companies in the states have folded up.

The association lamented that over 20% of registered members have closed down businesses due to inadequate power and the high cost of tariffs.

Minister of power tells Nigerians not to expect a magical electricity supply

Meanwhile, Legit.ng had previously reported that the minister of power, Abubakar Aliyu, on Monday, September 6, told Nigerians that he is not a magician as he is in the electricity sector to add value to what is being done.

It was reported that Aliyu who made the disclosure while resuming his official duties in Abuja, noted that citizens should not expect magic in the provision of adequate power supply.

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The 55-year-old who is taking over from Mamman as the minister of power said he is not coming to perform magic in the sector.

NLC threatens to go on strike

In a related report, the Nigeria Labour Congress (NLC) warned that it would embark on a nationwide strike if the speculation about an increase in electricity tariff becomes a reality.

The president of the NLC, Ayuba Wabba, gave the warning on Wednesday, September 1, via a statement in Abuja.

Wabba made the statement amid fresh plans to grant approval to Electricity Distribution Companies (DisCos) to hike electricity tariff.

Source: Legit.ng

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