By Joke Kujenya
MINISTER of Power, Adebayo Adelabu, has disclosed that despite the recent hike in electricity tariffs for Band A customers, the Federal Government continues to subsidize electricity, with an allocation of about N1.8trillion for 2024.
He made the disclosure on a television magazine interview.
Adelabu emphasized that the Electricity Act of 2023 allows for biannual reviews of tariffs, stating: “Review od tariff is actually legal once it is within the exclusive responsibility of the Nigerian Electricity Regulatory Commission (NERC). The Act actually provides for review twice in a year, every six months.”
Explaining the burden carried by the government, Adelabu stated: “If we have been paying the tariff at the same level in the last two years, it logically means that someone has been paying the burden of all these increases.” He further clarified that the government is currently bearing 67% of the total production, transportation and distribution costs.
The tariff hike, he also said, which became effective on April 3, 2024, affects customers classified under Band A, who enjoy 20 hours of power supply daily.
And despite criticism from many Nigerians regarding the immediacy of the tariff increase amid economic hardship, Adelabu assured consumers of value for their money, especially for Band A customers.
In a separate development, Adelabu addressed criticism over the remarks he made, apologizing for comments that were perceived as insulting to Nigerians, clarifying that his intention was not to insult but to advocate for better energy management practices.
“It was never intended to insult the sensibilities of Nigerians in any way. I never said people should switch off their freezers. It was actually innocent advice with regard to energy consumption management, which we believe will go a long way in reducing people’s energy bills. The example of the freezer might not have gone well with the majority of Nigerians, I will say sorry about that. It was never my intention,” Adelabu said.
Looking ahead however, he noted that the government aims to ramp up power generation from 4,000 to 6,000 megawatts in the next six months, with plans to decentralize power generation across states to enhance industrialization transformation.
And despite the tariff increase, the Power Minister assured consumers that efforts to reduce inefficiencies in the sector, couple with the currency instability, should positively impact electricity tariffs in the future.
