EXCERPTS FROM PRESIDENT BUHARI’S ADDRESS AT THE FIRST YEAR MINISTERIAL PERFORMANCE REVIEW RETREAT

• The COVID-19 pandemic has caused major disruptions in our economy. Our revenues and forex earnings have fallen drastically by almost 60% and even though we have acted to mitigate these effects by adopting an Economic Sustainability Plan, we have also had to take some difficult steps to stop unsustainable practices that were weighing the economy down.


• One of those steps is the deregulation of the price of premium motor spirit (PMS). The Government can no longer fix or subsidize PMS prices because it is excessively costly and unaffordable; may lead to the return of fuel queues and may adversely affect funding of other vital sectors such as health, education and other social services.


• Nevertheless, the Government understands the pains this has caused and has pegged the fuel price, through PPRA, to prevent exploitation of Nigerian citizens by petroleum marketers who may attempt to raise pump prices arbitrarily. The deregulation has given all Nigerians the opportunity to import sell petroleum products as the increased competition in the sector will reduce prices.


• The recent service based tariff adjustment by the Discos was needed due to the sub-par quality of service given by the Discos and the high cost of subsidizing electricity for Nigerians by the government, reaching up to a whooping N1.7 trillion.


• However, the government has sought to reduce the burden on Nigerians by ensuring tariff adjustments are made only on the basis of guaranteed improvement in service. Therefore, only customers who are guaranteed a minimum of 12hours of power and above can have their tariffs adjusted. Those who get less than 12 hours supply, or the Band D and E Customers will experience no increase. This tariff review will definitely lead to improved service for all at a fair and reasonable price.


• Government has also implemented a mass metering program whereby meters will be provided for over 5 million Nigerians. These meters will be procured from local manufacturers which will create thousands of jobs in the process.


• NERC has also committed to strictly enforcing the capping regulation which will ensure that unmetered customers are not charged beyond the metered customers in their neighbourhood. In other words, NO MORE ESTIMATED BILLINGS.


• As part of the Economic Sustainability Plan, the government is providing Solar home systems to 5 million Nigerian households in the next 12 months. We are currently funding manufacturers and retailers of Off Grid Solar Home Systems and Mini-Grids who are to provide the systems. This will create over 300,000 jobs and impact up to 25 million beneficiaries through the installation.


• The timing of these two adjustments have been questioned. However, it is highly coincidental considering the deregulation of PMS prices happened 18 March 2020 and the price moderation that currently took place is part of normal adjustments to global crude oil prices. Similarly, the review of service-based electricity tariffs was scheduled to start at the beginning of July but was put on hold to enable further studies and proper arrangements to be made.


• The government fully considers the current economic difficulties of Nigerians and does not wish to inflict hardship on the people in any way. We are convinced that if we stay focused on our plans, brighter and more prosperous days will come soon. Ministers and senior officials are also expected to ensure the vigorous and prompt implementation of the ESP and all of our programmes, which will eventually bring succour to Nigerians.