The Federal Government of Nigeria will need to come up with the sum of N3.2trn in 2024 to reverse the recent hike in electricity tariff, the Chairman of the Nigeria Electricity Regulatory Commission, Sanusi Garba said in Abuja on Thursday.

Speaking at a stakeholders meeting convened by the House of Representatives Committee on Power, Garba said that current investment in the sector, though commendable, was not good enough to guarantee a steady power supply across the country.

He added that if a total sectoral overhauling was not carried out, including fluctuation in foreign exchange, power supply in Nigeria would continue to pose a challenge.

He explained that before the recent review in tariff, distribution companies were only obligated to pay 10 per cent of their energy invoice, adding that the lack of cash backing was creating a liquidity challenge in the sector.

He further explained that between January 2020 and January 2023, the electricity tariff increased from 55 per cent to 94 per cent adding that “the unification of FX and current inflationary pressures are pushing cost reflective tariff to N184/kwh.”

He said, “If sitting back and doing nothing is the way to go, it would mean that the National Assembly and the Executive would have to provide about N3.2 trillion to pay for subsidy in 2024.”

Garba also said that only N185bn of the N645bn subsidy in 2023 has been cash-backed, leaving a funding gap of N459. 5bn.


Vice Chairman of NERC, Musiliu Oseni, who also justified the recent increase in tariff said the increment was needed to save the sector from total shutdown.


Chairman of the House Committee on Power, Victor Nwokolo (PDP, Delta) said the essence of the meeting was to address the recent increase in tariff and the various bands to which electricity consumers were recently categorised.

The lawmaker said the officials of NERC and DISCOS had given the committee useful Information, noting that “We have not concluded with them because the transmission company of Nigeria was not here and the generation companies too.

“We will hold further consultations with them by next week. But what they have said, which is true, is that without the change in tariff, which was due in 2022, the industry lacks the capital to bring the needed change.

“Of course, with the population explosion in Nigeria, the areas being covered are beyond what they estimated in the past and because they need to expand their network, they also need more money.’’

“Every day, there are changes to the exchange rate and there are also threats to power installations because of security, thereby increasing the overhead.

“The committee has not fully agreed with them because we are not saying either yes or no; we want to get more input and also find out the possibility of gas being sold to them in naira. More of this is dependent on generation and without the gas, you cannot have power.


“The committee cannot take any decision to stop the increase in tariff. That decision can only be taken by the entire House and not at the committee level. There must be a House resolution to stop it,” he said.

Source: https://punchng.com/FG-needs-N3.2trn-subsidy-to-reverse-electricity-tariff-hike-NERC

Always telling stories on how Nigerians shouldn't have a good life. Yeye people

After all these hikes, taxes, increment and so on, yet nothing is guaranteed.

I enter one shop yesterday, the man dey tell me say one cup of garri na 150 now, I jejely ask am WHY, say no be garri wey people dey fry for their backyard everyday. the man carry chair sit me down say people no dey go farm again, say some set of roaming human beings dey kill and kidnap people any how, and nobody go open mouth say pim. say people no go fit dey afford garri again, and him wife don buy 70 bags of semo, and him dey plan to buy more semo stock for shop incase popular demand start.

Let NERC generate the money themselves.

Wondering why all this sectors can't do anything on their own without asking for government intervention

We are finished.😭😭😭😭😭😭😭😭

Sha na agbero them carry power give 😂😂😂😂😂

Wicked leaders,wicked supporters

In order words 😄

I don't understand! Seriously? We joke a lot in this country.

adenigga:




Source: https://punchng.com/FG-needs-N3.2trn-subsidy-to-reverse-electricity-tariff-hike-NERC

2024 Nigeria cannot get light, an 18th century invention!!!!!

Darkness all through the land

Ahhh God abeg

adenigga:




Source: https://punchng.com/FG-needs-N3.2trn-subsidy-to-reverse-electricity-tariff-hike-NERC

They keep talking about lack of gas...

The gas in south east and south south is it not the largest in Africa? Is it not enough to tackle the issue of gas that they flare everyday?

Abi electricity generation is rocket science?

All these trial and error approach from the fg

Which useless news be this, living in darkness and talking of electricity, no be juju be that

Lies
Preparation for stealing

Stupid government.

Plz govt don't ever subsidize darkness, if they can't bring light for pple well to pay for it, let them cut off the whole wires in Nigeria and sell it with their transformers

more lies. can that money not come from the trillions that the governments are owing for power consumed?

Lies to justify the hike. Yet no power improvement

So they increased it to reverse it by spending N3.2 trillion. Obviously the increase wasn’t to improve on power delivery as the so called band A do not enjoy 20 hours of power

Thieves ....

I have been out of light for days now, thank God is now prepaid,if they like let them bring it

When is the next BBNaija showing? that is how they will use to keep you guys from protesting.

Nigeria is a failed nation.
Imagine we are still talking about power generation in this 21st century. Shame

Please don't reverse it. Rather, focus on improving the power supply with the increased rates.

Solar energy/Power solutions is now a comfortable alternative for those on Band A.

I don't just understand

Like Government needs 3.2 trillion to subsidize this current darkness?

Na wow oo to tinubu and his men sha

Very soon una go become a history just like nitel. Make Solar panels system price come down first, like mtn did then. SHEGE PROMAS.

I see a govt trying hard to use firebrigade approach to solve a deeprooted problem. God help them as they do.

A crucial aspect of the article is the cost reflective tarrif value. It's 184 naira. Most of us pay 70 naira or less except band A...which is around 20% of consumers.

And we expect there to be light all day.

Electricity costs money. Maybe if the power thieves pay off their debts it might help.

This is a lie , who is the subsidy being paid to and what item is it for ?

CrossRhodes:

2024 Nigeria cannot get light, an 18th century invention!!!!!

Darkness all through the land

Ahhh God abeg

It’s nauseating sincerely.