LAGOS, Nigeria (VOICE OF NAIJA)-Following the hike in electricity tariffs the federal Government says it plans to channel savings from the withdrawal of electricity subsidies towards enhancing power supply and bolstering social services across Nigeria.
The estimated saving is pegged at over N1 trillion, according to Minister of Information and National Orientation, Mohammed Idris.
Speaking as a guest on Radio Nigeria Kaduna’s popular Hausa participatory program, “Hannu Da Yawa,” he noted that a significant portion of the electricity subsidy, roughly 40%, primarily benefits around 15% of electricity consumers, consisting of affluent individuals and industrial clusters, who receive approximately 20 hours of electricity.
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“It is essential to emphasise 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,” he said.
Idris highlighted that 85% of the population, categorized under the new electricity supply regime, continue to receive the subsidy.
The Minister mentioned that the recent Electricity Act, endorsed by President Tinubu, has enhanced the governance of the Nigerian Electricity Regulatory Commission (NERC).
It also grants the Commission the authority to impose harsh penalties on electricity distribution companies for billing and supply violations.