FG moves to cut N200bn monthly electricity subsidy

FG moves to cut N200bn monthly electricity subsidy

As part of the efforts to cut the Nigeria’s N200 billion monthly electricity subsidies, the National Council on Power has adopted an initiative of a cost-reflective tariff for electricity consumption.

This was contained in a communique issued by the Ministry of Power at the just-concluded 6th edition of the National Council on Power held in Maiduguri, Borno State.

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The National Council on Power is the highest decision-making body for the power sector, comprising the Federal Government, states, the private sector, and other stakeholders.

The council adopted the view that subsidies must still exist for the vulnerable but must be targeted and well-administered at a manageable and sustainable level.
“Council adopted that electricity must be paid for at a cost-reflective rate, while subsidies must still exist for the vulnerable but must be targeted and well administered at a manageable and sustainable level,” the communique read partly.

The council also adopted that market liabilities must be apportioned to all parties, which will be subject to thorough engagements to ensure assets and liabilities apply to all parties.
Credit: Punch