FG to Probe N2tn Subsidy as Senate Reject Electricity Tariff Hike
The Senate has kicked against plans by the Ministry of Power to approve the proposed hikes in electricity tariff by Distribution companies.
The Senate also rejected plans to remove electricity subsidy given the present hardships in the country.
The Senate then called on the government to step down the idea of an increase in electricity tariff.
The upper chamber also directed the committee on power to investigate the N2tn required for electricity subsidy payment, other debts owed in the sector, and the state of metering in the country.
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The resolution of the Senate followed its consideration and approval of a motion moved by Senator Aminu Abbas (PDP, Adamawa Central) during plenary on the need to retain subsidy on electricity in the country for the foreseeable future.
Last week, the Minister of Power, Adebayo Adelabu, disclosed at a press conference in Abuja that Nigeria was not likely to sustain the current electricity subsidy payment.
He explained that the indebtedness of the country’s power sector to electricity-generating companies (GenCos) and gas companies (GasCos) had risen to over N3tn.
He said, “Today, we owe a total of N1.3tn to the power generating companies, out of which 60 per cent is owed to gas suppliers. Today we have a legacy debt, before 2014, to the gas companies of $1.3bn; at today’s rate, that is close to N2tn.”
