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FG Spends Over N50 Billion On Power Subsidy-Minister

Nigeria’s Minister of Power,  Sale Mamman has stated that the Federal Government spends over N50 billion in subsidizing electricity supply in the country.

Sale in a statement delivered by his Special Adviser, Media and Communications, Mr Aaron Artimas, while receiving delegates of the Guild of Actors and Film Producers in his office, quoted the Minister as stating that the FG subsidizes the costs due to the rising costs of power in Nigeria, citing the subsidies are provided to support the DisCos.

The Minister said, “Worried by the incessant complaints by ordinary Nigerians over the unavoidable and periodic increase in the cost of electricity, the Federal Government has been subsidising electricity supply in the country to the tune of over N50 billion.

“The funds are provided to augment the shortfall by the Distribution Companies (DiSCos) who have failed to defray the cost of bulk electricity supplied to them by the Generating Companies.

“However, following a minor increase in the tariff regime, the subsidy has now decreased by half, but still constitutes a serious drain on the nation’s economy,” Mamman stated.

The Minister added that the DisCos were privatised before Buhari’s administration came to power. He also stated that “the government has no alternative than to continue managing the sector before a final solution is secured.”

“Through the Presidential Power Initiative and other intervention measures, the government is diligently working to massively resolve all these inherited problems that have continuously frustrated the success of the sector,” he added.

Earlier in September 2020, the Nigerian Electricity Regulatory Commission (NERC) announced that only 62.63% of electric customers in Nigeria were under the estimated billing package.


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