The Federal Government has revealed plans to repurpose approximately N1 trillion in savings from electricity subsidy removal, redirecting these funds towards crucial social services and nationwide power infrastructure enhancements. Speaking during a radio program in Kaduna, Minister of Information, Mohammed Idris, highlighted the transformative impact of the new electricity act signed by President Tinubu. This act empowers the Nigerian Electricity Regulatory Commission (NERC) to penalize power distribution companies (Discos) failing to fulfill contractual obligations.
Minister Idris emphasized, “It is essential to emphasize that the funds to be saved from the withdrawal of electricity subsidy will be reinvested in enhancing power supply across the country and improving other vital social services such as health and education.”
Moreover, the Minister affirmed the continuity of post-fuel subsidy initiatives, including cash transfers to vulnerable Nigerians and the provision of CNG buses. Regarding the N25,000 cash transfer program, he revealed that the presidential committee overseeing its operational mechanism has submitted its report, signaling an imminent commencement.
In recent developments, the Federal Government, via the NERC, implemented increased electricity tariffs for Band A users receiving a minimum of 20 hours of electricity daily, now priced at N225 per kWh—a substantial 300% rise. This move targets 17% of total electricity consumers, accounting for approximately 40% of the nation’s power supply. The new cost-reflective tariff aims to significantly reduce the government’s electricity subsidy bill, projected at around N1.67 trillion for 2024—a 170% increase from the previous year. This projection anticipates a monthly subsidy reduction of 52% following the subsidy removal for B and A users.lleeeeegrtrrrr
