Electricity subsidy reduced to N1trillion, says Adelabu

Government subsidy on electricity has decreased from over N3 trillion to N1 trillion, the Minister of Power, Chief Adebayo Adelabu said.

The Minister spoke on Tuesday in Abuja at a public hearing on electricity tariffs, organised by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation.

According to the Minister, the introduction of Band A with a higher cost has reduced the subsidy on electricity.

Adelabu explained that without an increase in energy tariffs, the government would not have been able to afford the subsidy increase of around N3 trillion, adding the ministry put in place a plan wherein customers in Band A would pay higher tariffs to balance the subsidies to avoid taking on more debt.

He restated that the goal of the tariff increase is to lower costs of living rather than raise them.

He said, “We are out to make things better for Nigeria and to create industrial development through our local manufacturing, and energy is needed to do this.”

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