Federal Government Confirms 85% of Nigerians Still Benefit from Electricity Subsidy

• Despite recent tariff increases, the Federal Government states 85% of Nigerians still receive electricity subsidies, addressing public concerns
• The government plans to reinvest over N1 trillion saved from subsidy removal to improve power supply and social services

Despite the recent tariff hike in Nigeria’s electricity sector, the Federal Government asserts that 85% of Nigerians continue to receive electricity subsidies. This revelation comes amidst public outcry following the Nigerian Electricity Regulatory Commission (NERC) announcement regarding tariff adjustments for Band A customers.

NERC’s decision on April 3 to increase tariffs for Band A consumers from N68 to N225 per kilowatt-hour sparked nationwide discussions. The regulatory body justified the move by highlighting the elimination of subsidies for Band A users, who constitute approximately 15% of the nation’s power consumers.

In response, Mohammed Idris, the Minister of Information and National Orientation, addressed concerns in a statement issued by his Special Assistant (Media), Rabiu Ibrahim, on Saturday. Speaking during the “Hannu Da Yawa” program on Radio Nigeria Kaduna, Idris clarified that the subsidy persists for 85% of Nigerians under various new electricity supply framework categories.

Idris emphasized the disproportionate nature of the subsidy distribution, where approximately 40% benefits a mere 15% of consumers. This privileged minority, including affluent individuals and industrial clusters, enjoys extensive electricity access, averaging about 20 hours daily.

The statement highlighted the government’s stance and underscored plans to reinvest the projected savings of over N1 trillion from subsidy removal into enhancing the power supply and social services across the nation. President Tinubu’s recent signing of the new Electricity Act further strengthens the governance of NERC, granting the agency authority to impose severe penalties on electricity distribution companies for billing irregularities and service deficiencies.