…Insists upward review affects 15% of consumers
The Federal Government on Friday said it still subsidises power by 85% despite the recent announced upward review in the country.
The Minister of Information and Oreintation, Mohammed Idris who disclosed this at the 4th Ministerial Press Brieifing said the misconception around the policy was understandable.
Mr Adebayo Adelabu, Minister of Power and Dr. Musiliu Oseni, Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), were also on hand to provide some clarification on the review, said the 15% consumers affected are capable and have the capacity to pay.
Idris explained that the review was a strategic step toward a more sustainable, efficient, and equitable electricity sector for the country.
He said, “A few days ago, the Federal Government unveiled a progressive policy in the power sector, which aims to boost sufficiency in power supply for all Nigerians.
“The most important aspect of the policy is that the Tinubu administration is sustaining electricity subsidy to 85% of Nigerian consumers, which re-justifies its credential as a Pro-People democratic government while effecting electricity tariff increment to only 15% of the electricity consumer population.
“Misconceptions and concerns around the tariff review are understandable. However, let me reassure every Nigerian that this review is a strategic step toward a more sustainable, efficient, and equitable electricity sector. It lays the groundwork for significant improvements in service delivery, infrastructure development, and economic prosperity.
“Our focus must therefore remain steadfast on ensuring that the electricity sector’s transformation benefits all Nigerians, supports our industries, and propels our nation towards its bright future.”
The minister also listed other steps taking by the current administration to improve the power sector including the recent signing into law the Electricity Act (Amendment) Bill, 2024, by President Bola Tinubu.
He said the new law will further strengthen the governance structure in the Power Sector and mandates the GENCOs to set aside 5% of their actual annual operating expenditure from the preceding year for the development of the host communities.
The Act, he further said will also removed Electricity from the Exclusive list to empower state government to generate and distribute electricity to residents.
The Minister therefore assured Nigerians that the government will not shy away from engaging the general public on all its programmes and policies.
He said, “Let me restate our commitment to transparency in public communication as a deliberate policy to build trust between the government and its citizens. This is paramount because transparency plays a crucial role in fostering and reinforcing that trust.
“We understand that transparency is not just a principle to be upheld but a foundation for good governance. Therefore, we are committed to ensuring that our communication channels remain open, accessible, and informative while we strive to provide accurate, timely, and relevant information to the public on matters of governance, policy, and programme. ”
He added, “Since our last meeting with you, some salient achievements have taken place in our economy as we are all witnesses to the fact that through the implementation of some macroeconomic reforms, our foreign exchange market has stabilized and our beloved Naira is getting stronger daily.
“The recent establishment of the Presidential Economic Coordination Council and the Economic Management Team Emergency Task Force underscores Mr. President’s commitment to fostering a unified strategy for economic management that leverages the expertise and insights of key stakeholders from both the public and private sectors. These teams will serve as platforms for robust discussions, analysis, and decision-making to drive sustainable economic growth, job creation, and prosperity for all Nigerians.
“The launch of the Renewed Hope Infrastructure Development Fund (RHIDF) aims to raise about N20 trillion for investment in critical sectors such as the real sector of the economy, transport, social services, agriculture, and ICT among others.
“The Fund seeks to support projects that promote growth, enhance local value-addition, create employment opportunities, and promote exports.
“For emphasis, the projects to be targeted by the Fund include the construction of the Lagos-Calabar Coastal highway, which kick-started recently, the Sokoto-Badagry Expressway, Lagos-Kano Expressway, the Eastern Rail Lines and the modernization of ports and aviation facilities across the country.
“To expand access to education as a potent weapon against poverty, the President has signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) bill, 2015, into law. This groundbreaking initiative goes beyond mere legislation – it is a revolutionary approach to set up a permanent structure that would support the pursuit of education by our youths.”
