Sunday, April 21, 2024

FG considers 300 per cent electricity tariff hike

Mr Onanuga said it would be premature to comment on the matter.

• April 3, 2024
Nigerian Electricity Regulatory Commission (NERC)
Nigerian Electricity Regulatory Commission (NERC)

The administration of President Bola Tinubu is to increase energy rates by 300 per cent to reduce government spending since it can no longer afford the huge amount it pays to subsidise electricity yearly.

According to a report by Bloomberg on Tuesday, electricity companies in Nigeria will soon have the government’s say-so to hike tariffs from N68 per kilowatt-hour to N200 per kilowatt-hour for urban consumers in April.

The urban consumers occupy about 15 per cent of the population who consume 40 per cent of the nation’s electricity, the newspaper said.

The report was based on conversations with multiple government officials who, the newspaper said, were not authorised to speak publicly on the matter.

Presidential aide Bayo Onanuga who said it would be premature to comment on the matter, stated that the official regulator, Nigerian Electricity Regulatory Commission would communicate feedback and necessary developments to the public.

“The regulator will make any pronouncements based on its discussion with the distribution and generating companies. The presidency cannot say anything at this stage,” Mr Onanuga told the newspaper.

With only urban consumers affected, Mr Tinubu will only now continue to subsidise electricity tariffs for persons in rural areas.

In February, Minister of Power Adebayo Adelabu said that the federal government could no longer shoulder the burden of subsidising electricity for Nigerians, noting that the government’s power debt to generating companies had ballooned to more than 1.3 trillion naira.

Since Mr Adelabu assumed office last year, he had been clamouring for the government to scrap the electricity subsidy to reduce the debt burden of the power ministry, which he said was not sustainable for the sector.

It is unclear exactly how the citizens will react to the planned hike as the majority of them have yet to recover from the suffering triggered by fuel subsidy removal last year.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Dauda Lawal-Dare

States

Fleeing villagers storm Zamfara Government House seeking protection from bandits 

“Before now, there were military agents attached to our village.’’

Cubana Chief Priest

Showbiz

EFCC arraigns Cubana Chief Priest; Davido to move DMW artistes to new label, other entertainment highlights this week

This week’s entertainment scene features thrilling news, movies, chart-topping music, and all the must-know updates from across the industry.

Abattoir

States

Kwara government shuts abattoir over suspected meat poisoning

The Kwara government on Sunday temporarily shut the abattoir at Mandate Market in Ilorin to allow for fumigation and general cleaning of the area.

JAMB

Education

2024 UTME: JAMB sanctions officials for asking candidate to remove hijab

JAMB said there was no policy barring candidates from wearing religious paraphernalia peculiar to their faith.

Yahaya Bello

Anti-Corruption

Ebira youths ask Tinubu to caution EFCC; warn other ethnic groups against maligning Yahaya Bello on social media

Mr Bello is accused of N82 billion money laundering and has been running battles with the EFCC on his arraignment in court.

Water tanker

Enugu

Enugu government gives drivers deadline to colour-coat water tankers

“Tanker owners and drivers must colour-coat their tankers with sky blue if they are carrying drinking water or yellow if they are for industrial water.”