₦airaland Forum

The Federal Government, through its Nigerian Electricity Regulatory Commission, has declared that it would spend about N2.4tn on power subsidies before the end of this year.

NERC’s Commissioner of Planning, Research, and Strategy, Dr Yusuf Ali, disclosed this at the PwC’s Annual Power and Utilities Roundtable, themed ‘Reigniting Hope in Nigeria’s Electric Power Sector,’ in Lagos on Thursday.

Ali explained that the subsidy had fluctuated due to foreign exchange challenges and tariff adjustments.

“As of November, the subsidy amount stood at N1.9tn, but with current trends, the monthly subsidy for electricity is expected to reach N260bn in December,” Ali stated.

He emphasised that the N2.4tn is an annual estimate that could adjust depending on the monthly cost-benefit tariff.

“Every month, we calculate the difference between the cost-reflective tariff and the approved tariff to determine the subsidy,” he explained.

Ali added that the government is expected to finalise the total subsidy figure by year-end based on actual consumption and tariff trends.

The Minister of Power, Adebayo Adelabu, who was represented by the Chief Technical Adviser to the Minister, Adedayo Olowoniyi, said, the Ministry of Power, in collaboration with PricewaterhouseCoopers, has developed a draft Integrated National Electricity Policy aimed at addressing critical challenges in Nigeria’s power sector.

Adelabu emphasised the importance of implementing cost-reflective tariffs to attract necessary investments and ensure the sector’s sustainability.

“We cannot dance around the fact that a market that does not create a line of sight of return for investors will not get investment,” Adelabu noted.

The minister further acknowledged the reluctance to adopt cost-reflective tariffs but argued that it is a necessary step for achieving 24-hour electricity and universal access.

He highlighted the administration’s efforts under the Renewed Hope Agenda, including the implementation of the Electricity Act of 2023 and the Presidential Power Initiative in partnership with Siemens.

Adelabu pointed out the challenges of vandalism, ageing infrastructure, and inefficiencies in the electricity value chain, which have hampered progress.

He revealed that the Transmission Company of Nigeria spent nearly N10bn in six months repairing vandalized towers.

“Our successes have not been without challenges. Frequent grid disturbances due to capacity inadequacies and consistent vandalism have impacted the sector,” he said.

He added that these initiatives focus on infrastructure development, such as building substations and upgrading transmission and distribution networks.

“PwC’s support has been instrumental in drafting the Integrated National Electricity Policy, which will guide the sector’s strategic implementation. The policy aims to foster market discipline, improve energy delivery efficiency, and ensure subsidies benefit the most vulnerable,” Adelabu stated.

He called for collective responsibility among stakeholders, stressing, “Hope is not passive.

“We must innovate and implement bold ideas to restore confidence and deliver a sustainable energy future for all Nigerians,” Adelabu added.

Obasanjo claimed to have spent a whopping $16 billion in the power sector and asked where the power is. That was enough to set afire the mounting fury of Obasanjo and his supporters who were still hurting badly from Buhari’s snub of the many vile means they had been trying to call him out for a shouting match. They fawned, they threatened and they wailed but yet refused to tell Nigerians what they did with the huge $16 billion they claimed to have expended on power. Particularly miserable was Obasanjo’s sorry reply, through his spokesman, to the effect that Buhari should go and read Obasanjo’s book, My Watch, if he needs a reply to the poser he threw. That singular reply rebounded so badly that Obasanjo was left naked, soiled and bruised among an angry populace who couldn’t believe that a man that was in power for eleven years could give that kind of specious and outlandish answer on an issue that requires very clear and lucid reply. Poor Obasanjo, he thought this time around he will muddle his way through such huge poser by applying his well known guile and puerile antics but he seems trapped this time around.

Nigerians are asking if Obasanjo spent $16 billion on a power that exists in the pages of his book? So Nigerians that have been yearning for constant power supply or neon years should buy Obasanjo’s book to satiate their cravings for more power supply? Did Obasanjo and his mediocre spokesman mean that Nigerians will see power, real megawatts of electricity in Obasanjo’s book? Did Obasanjo use a whopping $16 billion to generate electricity that could only be accessed from his book? Was the $16 billion Obasanjo said he spent to power meant to be for power in his book only? You can imagine the audacity of corruption. You can imagine the daftness of the corrupt. You can imagine the porousness that undergirds corruption. Yes, it is easier to steal than to acquire and this shows a demeaning limitation that rules the mind of the corrupt.

BoldBrainz:
This electricity privatization that was done under Jonathan has to be reviewed. The private companies running the National electricity businesses are fleecing the government and populace.

How on earth are we subsidizing darkness while Distribution companies are dishing Nigerians humongous bills through the estimated billing system and increasing tariffs every month for metered consumers?

Nothing about the entire process makes any sense!

EmperorCaesar:
Naralanda1

Your food is here

To be frank tho, the electricity situation has improved since PBAT ascended the throne. We now have like roughly 16hours of light everyday and I believe the minster is talking in the best interest of the Nation

I dont care if they SA or Egypt has 24hours electricity supply, I compare our past with our present. Thats how you compare and not by some useless d1ck measurement with countries you dont share borders with

Ebubu6:
It really needs to be reviewed

EmperorCaesar:
Naralanda1

Your food is here

To be frank tho, the electricity situation has improved since PBAT ascended the throne. We now have like roughly 16hours of light everyday and I believe the minster is talking in the best interest of the Nation

I dont care if they SA or Egypt has 24hours electricity supply, I compare our past with our present. Thats how you compare and not by some useless d1ck measurement with countries you dont share borders with

RepoMan007:
Instead of subsidizing this power, they should share the money to SMEs and Households to buy solar, wind or generating sets. 2.4Trillion is 2.4m times 1.0m.

That's the equivalent of 2.4m people being given N1m each OR 1 million people getting N2.4m each.

EmperorCaesar:
Naralanda1

Your food is here

To be frank tho, the electricity situation has improved since PBAT ascended the throne. We now have like roughly 16hours of light everyday and I believe the minster is talking in the best interest of the Nation

I dont care if they SA or Egypt has 24hours electricity supply, I compare our past with our present. Thats how you compare and not by some useless d1ck measurement with countries you dont share borders with

EmperorCaesar:
To be frank tho, the electricity situation has improved since PBAT ascended the throne. We now have like roughly 16hours of light everyday and I believe the minster is talking in the best interest of the Nation