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FG To End Electricity Subsidy From 2027 - Politics (4) - Nairaland

Nairaland Forum › Nairaland General › Politics › FG To End Electricity Subsidy From 2027 (9668 Views)

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Re: FG To End Electricity Subsidy From 2027 by TopBanter: 11:41am On Aug 01
Kukutente23:
Fora UK trained technocrat, it's shocking that you don't know that the particular AI software you're using is a Google product.

If you're talking facts, you should know that the power sector is not fully deregulated as you claim since Discos don't buy power directly from Gencos and more importantly, the transmission infra is still under the government.

I don't know the past you're talking of where Nigerians wish to pay nothing for power. Nigerians have been paying power bills since the first power station was opened in Ijora. The fact is that Nigeria's power sector is distorted because of lack of adequate infrastructure and regulations to ensure they run properly. Without that, even if you begin to pay cost reflective tariff, you'll still find yourself in a weak market
It is Google AI. Similar to ChatGPT, Grok etc. Google transitioned from a search engine to AI automated responses.

Anyone seeking factual info can use any quickly. How is that not obvious? You're a waste of time. Go and sit down or do a course to gain more knowledge. You only argue obtusely here. Never intelligently or logically.

Re: FG To End Electricity Subsidy From 2027 by Nobody: 11:48am On Aug 01
Enough time to save up for solar
Re: FG To End Electricity Subsidy From 2027 by Yampotatocarrot(m): 11:56am On Aug 01
abelee:
Did government provide mobile phones for you to access telecoms networks

For you to enjoy premium services in Nigeria, we must be ready to pay premium prices for them like it is all over the world. Let us be careful what we wish for in Nigeria.
But mobile phones belong to you, you can take it anywhere you want, while prepaid meter is only attached to a house, you can't move it when you move
Re: FG To End Electricity Subsidy From 2027 by toffyz(m): 12:06pm On Aug 01
olarent:
Haha,it's is free in my place here in Itori ogun state installation is just #5k
You see, BEDC don finish us for here ooo

Please, which Disco dey in charge of Itori, Ogun State?
Re: FG To End Electricity Subsidy From 2027 by Guestmale: 12:24pm On Aug 01
youngsahito:
why can't the same govt provide free prepaid for all electricity user. They should create another agency for that.
Genco has been sold long ago but they are still operating as if they are still under government.

Consumers or customers shouldn't be the one paying for prepaid meter,it supposed be the duty of the genco to supply their customers meter to measure what the customer is consuming. We don't go to filling stations with our meter, filling stations provides that.
Re: FG To End Electricity Subsidy From 2027 by extremophile: 12:26pm On Aug 01
Whatever legitimate step is taken to ensure regular power and curb the exploitation in the power sector is okay by me. If removing subsidies will ensure consumers are metred and supply improves, let's have it.
Re: FG To End Electricity Subsidy From 2027 by frog12: 12:32pm On Aug 01
but you'll pay more after they remove it shocked

but adelabu said it has ended since last year

Jakarta:
Long overdue, DisCos are using this subsidy rubbish as an excuse to scam customers paying cost respective tariffs.
Re: FG To End Electricity Subsidy From 2027 by Skinnygee1: 12:36pm On Aug 01
Please,is band A subsidized? embarassed
Re: FG To End Electricity Subsidy From 2027 by Debroslink: 12:46pm On Aug 01
Gboss247:
Do other countries earn a lot of there own currencies to live a better life?
Even your sentence is terrible.
Re: FG To End Electricity Subsidy From 2027 by Debroslink: 12:46pm On Aug 01
Skinnygee1:
Please,is band A subsidized? embarassed
Hell YES. It will be around 1000 naira per unit from next year.
Re: FG To End Electricity Subsidy From 2027 by Jakarta: 12:49pm On Aug 01
Gboss247:
Are aware that a lot Nigerians relocated or met with power companies to degrade them from band A because it is too expensive?
That was how we complained in 2012 that paying ₦141 per litre for fuel without a subsidy was too expensive, how far today?

I don’t consider spending ₦650 to power a 200L, 120W SkyRun refrigerator for 24 hours too expensive. What is the point of subsidising electricity if you will end up spending even more on fuel to power your home?

What we should be more concerned about is the stability and reliability of electricity supply. Refusing to pay a cost reflective tariff will not make that happen. Electricity subsidies are only enriching a greedy few while ordinary consumers continue to pay heavily for fuel, generators, and alternative sources of power.
Re: FG To End Electricity Subsidy From 2027 by Jakarta: 12:52pm On Aug 01
frog12:
but you'll pay more after they remove it shocked

but adelabu said it has ended since last year
It ended only for Band A, the government still paid subsidies for band B, E. Paying cost reflective tariffs gives us the power to hold GenCos, and DisCos accountable.
Re: FG To End Electricity Subsidy From 2027 by Eriokanmi: 1:04pm On Aug 01
Jakarta:
Ogbeni please make some research and stop displaying your ignorance publicly. Are you aware that band E users are still paying #40 per unit, where do you think the balance #169.50 for cost reflective tariff is coming from? Me supporting this government ogbeni you well so? I'm a Nigerian citizen who doesn't allow sentimental emotions to becloud my sense of reasoning. Awoof go always run belle, make research please.
Is everybody on band E like you? Which useless research are you talking about here? Shame on you guys for defending lies even in the face of the obvious. Shame! When we keep complaining of unexplainable increase in tariff to discos, they say it's not their fault but from the government and adelabu too would say it's not a tariff increase per se. They keep dodging the question. I paid for my meters both at work and in the office and I recharge a fixed amount of units monthly. Whenever there's an increase i do know, definitely.

I don't blame you guys as you're still stuck under your parents' apron You know nothing
Re: FG To End Electricity Subsidy From 2027 by Jakarta: 1:48pm On Aug 01
Eriokanmi:
Is everybody on band E like you? Which useless research are you talking about here? Shame on you guys for defending lies even in the face of the obvious. Shame! When we keep complaining of unexplainable increase in tariff to discos, they say it's not their fault but from the government and adelabu too would say it's not a tariff increase per se. They keep dodging the question. I paid for my meters both at work and in the office and I recharge a fixed amount of units monthly. Whenever there's an increase i do know, definitely.

I don't blame you guys as you're still stuck under your parents' apron You know nothing
How much is tariff for Bands B, C, D and E and how much is true cost reflective tariffs, If I'm on Band E why should I be calling for subsidy removal?
Ogbeni say I dey lie, and you no fit dispute my statements of government paying subsidy for Bands B, C, D, and E, and purchasing free meters for customers. Ur free 50MB opera mini data no dey work for Google search? Na parents like you want make their kids be world class surgeons , and computer scientists, but no want pay school fees, or buy text books. Hollodo uprising senior prefect.
Re: FG To End Electricity Subsidy From 2027 by Reference(m): 1:58pm On Aug 01
Been on Band A since the get go so I don't expect my bills to go any further than they are right now.

For the rest of electricity consumers on other bands, so sorry.
Re: FG To End Electricity Subsidy From 2027 by Kukutente23: 2:03pm On Aug 01
TopBanter:
It is Google AI. Similar to ChatGPT, Grok etc. Google transitioned from a search engine to AI automated responses.

Anyone seeking factual info can use any quickly. How is that not obvious? You're a waste of time. Go and sit down or do a course to gain more knowledge. You only argue obtusely here. Never intelligently or logically.
Lol
So where in your screenshot am I wrong?
It's still Google whether AI or search
What school did you attend
Re: FG To End Electricity Subsidy From 2027 by Atlantis585: 2:10pm On Aug 01
That’s okay. You cannot miss what you never had. While some African countries have uninterrupted power supply at reasonable rates, we that don’t are about to start paying more for power that is never there in the first place.

Thank you Mr. Tinubu.
Re: FG To End Electricity Subsidy From 2027 by geoworldedu: 2:24pm On Aug 01
Gboss247:
Solar tax incoming!
Chai, na wa o.
Re: FG To End Electricity Subsidy From 2027 by 2tpick: 3:30pm On Aug 01
gtassure:
Yes na, No money, they were borrowing to pay that subsidies in the first place!
So will they stop borrowing after they stop the subsidy?
Re: FG To End Electricity Subsidy From 2027 by Josywhyte: 3:43pm On Aug 01
Jakarta:
Long overdue, DisCos are using this subsidy rubbish as an excuse to scam customers paying cost respective tariffs.
Just know you will start recharging your prepaid meter for 5k per unit or pay over 40k per kilowatt for postpaid. You don't remove subsidies when you haven't put structures on ground to tackle the effects it will have later. See fuel subsidy for example, today we're buying fuel for 1400 to 1500
Re: FG To End Electricity Subsidy From 2027 by Jakarta: 4:03pm On Aug 01
Josywhyte:
Just know you will start recharging your prepaid meter for 5k per unit or pay over 40k per kilowatt for postpaid. You don't remove subsidies when you haven't put structures on ground to tackle the effects it will have later. See fuel subsidy for example, today we're buying fuel for 1400 to 1500
Subsidy is not being paid for Band A users, they are already paying cost reflective tariffs. Even at #140 per litre for fuel without subsidy, we protested and rejected it, how far so far?
Re: FG To End Electricity Subsidy From 2027 by Josywhyte: 4:04pm On Aug 01
Jakarta:
Subsidy is not being paid for Band A users, they are already paying cost reflective tariffs. Even at #140 per litre for fuel without subsidy, we protested and rejected it, how far so far?
We are still secretly paying fuel subsidy till today
Re: FG To End Electricity Subsidy From 2027 by Jakarta: 4:05pm On Aug 01
Josywhyte:
We are still secretly paying fuel subsidy till today
Of what benefits is the subsidy to us then? Only a few are making a killing from it at the detriment of the majority.
Re: FG To End Electricity Subsidy From 2027 by Gerrard59(m): 4:10pm On Aug 01
epainos:
It takes a lot of gut to remove subsidies and I am so happy this is happening. Subsidies habe killed Nigeria.

What is going to happen? Govt will keep on doing it, and they will over do it. Lol. Then, everyone will sit tight and the fight will be real. A balance will be reached somehow. Lol.

For example, govt will want to remove all subsidies on agric too. Lol. Thats when they will realise that ha...mmmba!!! Lol.

But sincerely speaking....electric, gas, oil, subsidies must go. People will sit tight now. Discos will go wild with illegal connections and deal ruthlessly with their dishonest staff memebers. Thats it. All the chicken change bribes were and there will end.

Customers too will start raising alutas at a slight cheat from Discos.

Also, solar will take over. The lithium industry will come into effects. Govt will quickly start taxing solar panels mounted on roofs. Lol. Na so na. Discos will be proactive. Guess what...people will start installing more energy than they need and sell to Discos. You find customers taking weekly or monthly payments from Discos soon instead of what is happening now.
. We should habe balanced it a long time ago.

I support using subsidies the right way and not using it toncreat more problems.

Everyone will sit tight. Everyone will be fine.
free prepaid is still subsidy.
Thank you Jesus! I am glad we have right thinking Nigerians who understand basic economics and your post got is on the first page. As we had with NITEL vs private telecoms companies, so would we have it with discos.

Tinubu might just be the right person for the job!

This is making the system work out by itself instead of forcing it to work with subsidies. Subsidies only created opportunists in Nigeria because we took it too far
T H A N K Y O U
Re: FG To End Electricity Subsidy From 2027 by nairalanda1(m): 4:16pm On Aug 01
Jakarta:
That was how we complained in 2012 that paying ₦141 per litre for fuel without a subsidy was too expensive, how far today?

I don’t consider spending ₦650 to power a 200L, 120W SkyRun refrigerator for 24 hours too expensive. What is the point of subsidising electricity if you will end up spending even more on fuel to power your home?

What we should be more concerned about is the stability and reliability of electricity supply. Refusing to pay a cost reflective tariff will not make that happen. Electricity subsidies are only enriching a greedy few while ordinary consumers continue to pay heavily for fuel, generators, and alternative sources of power.
NIgerians do not get it. Subsidy is why they don't have electrcity.

As you aptly put it, if we won't pay a cost reflective tarrif, we would pay it in form of fuel, generator, alternative sources of power, even transformer and wires on top. But Nigerians seem to live in dreamland.

I mean we are paying cost reflective tarrif to GSM companies. When was the last time anyone of us paid for GSM antenna and fuel for their generator?
Re: FG To End Electricity Subsidy From 2027 by nairalanda1(m): 4:20pm On Aug 01
Josywhyte:
We are still secretly paying fuel subsidy till today
I won't be surprised if government is not paying fuel subsidy, but for now, they are not, reason being fuel is not costing less than 500 naira.

It costs far more than 700 naira to refine a liter of fuel, even more self. If there was subsidy, fuel prices would be around N200 or less, and government would be spending something like N30 TRILLION annually by now. on subsidy

Infact, government did resume paying subsidy, between October 2023, and april 2024, and paid some subsidy debt up to the end of that year...and during the period , petrol prices never passed 1000 naira.

lIKE I said, I would not be surprised if government is paying subsides, and I am wrong, but for me, government isn't paying subsides. It just can't afford it, not with our debt being so high, and we are now able to pay salaries in every state for government workers. Bringing back subsidy would just wreck us, and worsen the debt , and make the economy worse.
Re: FG To End Electricity Subsidy From 2027 by nairalanda1(m): 4:25pm On Aug 01
Eriokanmi:
Is everybody on band E like you? Which useless research are you talking about here? Shame on you guys for defending lies even in the face of the obvious. Shame! When we keep complaining of unexplainable increase in tariff to discos, they say it's not their fault but from the government and adelabu too would say it's not a tariff increase per se. They keep dodging the question. I paid for my meters both at work and in the office and I recharge a fixed amount of units monthly. Whenever there's an increase i do know, definitely.

I don't blame you guys as you're still stuck under your parents' apron You know nothing
Eriokanmi, it's like you don't get it, really

It costs N200-250 to produce one kwh of power. Band A right now are paying a cost reflective tarrif, but most Nigerians are under band b to e...meaning the sector cannot make enough profit to fix things.

Let's practicalize it, so that you understand. In April, discos as a whole made 206 billion naira. April this year. They were also expected to distribute electricity worth 300 billion naira in the same period...and nearly 200 billion of that was in gas costs.

So, how would they pay bill of 300 billion naira with 206 billion naira. Collection rates are now at 80% of customers.

I know you are campaigning against tinubu, and are using this as example of hardship, and yes, tinubu must go, but this subsidy and price control thing is hindering the power sector from growing.

I mean, see what Prof Barth Nnaji said last year august. Prof is not a APC member o...he served under PDP governments. THe below is a summary of what he said (Link to the article is here)


Asset Maintenance: Unrealistic pricing fails to cover dollar-denominated operations and maintenance, causing system failures. The energy charge component of the power tariff must be able to cover the cost of maintaining the assets,” Nnaji said.

Subsidy and Debt Crisis: Subsidies and non-cost-reflective pricing create trillions of naira in debt for Generation Companies (GenCos). “The gas-to-power benchmark being below market realities places an unsustainable burden on power producers.

Affordability vs. Alternatives: Grid power with realistic tariffs remains cheaper than private diesel generators.There's no place in the world where electricity comes free... The key is affordability, and that comes from having a cost-reflective tariff
Will you call Prof a child? Or someone who has not left his mother's house?

Or would you, if you were selling something to people, set your prices at what they can afford, or at a price where you would be able to maintain good service to your consumers?

Yes, government has looter, yes etc etc, but that still doesn't change the need for cost reflective tarrif in the power sector.
Re: FG To End Electricity Subsidy From 2027 by Jungpablo: 4:31pm On Aug 01
How many times dem go remove subsidy?
Re: FG To End Electricity Subsidy From 2027 by reddingtonblack: 5:03pm On Aug 01
Jakarta:
I'm not demonizing subsidy, but just swallowing the bitter pill, let's be honest the blind subsidy Nigeria is practicing is not sustainable, it only enriched few people at the detriment of those who this subsidies are meant for.
I won't allow you to muffle things up, subsidy is a significant presence of government in her people's life.
Hardship is inevitable globally therefore arise the need to integrate " subsidy" into governance, every develop country do it in one form or the other
If you know the subsidy system is opaque, what stops restructure nd advance security measures to detect n block or loops .. Don't tell me it not possible or is cutting the head off a solution to headache. C'mon

With the same energy Tinubu is using to reform tax n ensure no one escape Tax have we ever tried to restructure "SUBSIDY" before concluding it unsustainable

Its unsuatainable rite but our govt lavish opulence expenditure is sustainable ... Look at the billionaire wasted yearly on pilgrimage, buying Suvs, new appliances and renovations overall cost including churches, mosques, king palace

DO you ever see politicians argue there expenditure is not sustainable But whatever the poor benefit from e no dey dey sustainable .. We are not fuulls


Customers buy meters, pay for poles, fund repair of transformers, still they still don't have electricity. Of what use is the subsidy then if the distribution companies keep crying fowl of customers not paying cost reflective tariffs, hence poor electricity, and customers handling DisCos functionalities?
I see your attempt at tryin to muffle things up, the claim the people are not paying enough is invalid base on the fact that Govt is not meeting up in payment of her own share ( i.e Govt is always owing)

So now when govt is owing subsidy even if consumer pay there part .. the deficit payment on govt side will always leave setback, instead of govt to admit n leave up to its responsibility they want to heap the blame on Nigerians that we are not paying


DisCos are exploiting customers with this subsidy rubbish. Can you compare our telecoms sector with that of the power sector? Why are distribution companies scared of investing in power distribution?
You cant confuse me, you cant say discos are exploiting customers nd at the same time opine customers are not paying enough.
Like i said Subsidy does not negate cost reflective ...Actual cost exist, estimated sales is shared between consumers nd govt. No there money suppose complete
Telecomm sector is looking good, cos govt has no hand in it, incase you forget i will remimd you of NITEL ... What happened to it, was it different from Nepa we got all manners of excuses from govt
unfortunately the power sector has tew much govt hands officially & proxy in it which makes it very difficult to liberate that sector ... they want to make good profit but don't wana invest good capital
They are powers that dont want that Sector to liberate hence investor keep off ... E just be like our refinery God save dangote he went to build new refinery if he invested in the old e for cry

They sit and fold their hands hoping for free money from the government, from power they did not distribute.
What are you saying, one of the reasons disco are failing is because Govt is always " owing" .. the deficit from govt end is a setback for the discos
subsidy is sustain if we do it the right way, they know this things but feign clueless .. Tinubu is out to remove all subsidy, the hence of that is gather more money at his disposal to play politics with governors, more money to state to buy there loyalty

We need revenue, But Tinubu ia very lazy to take the productivity route so he is alienating subsidy across board so he can have funs to do what he consider more important than the people
Most developed nations don't practice the one cap fits all type of Nigeria subsidy.
I will understand if your complains was about the timing of subsidy removal, and also the money realized for the intented subsidy payments not being judiciously utilised or accounted for. While on Band E in 2024 my electricity bill hovered around #6k per month, spent over #190k monthly fueling my generator, was part of a #9.5M contribution for transformer, cable, and electric poles installation for a so called subsidies plan. Moving to Band A, I currently average around #106k monthly for a minimum of 20 hours of electricity daily, not uninterrupted though. As band A users we bought electric poles, wires, meters, and transformer of what use is the subsidy being paid by the government then? States like Bayelsa state haven't witnessed electricity in years, electricity subsidy is only giving DisCos room to reap from where they did not sow. The government should focus more on cautioning the adverse effects of subsidy removal, and strict regulation not directly paying for it, because blindly paying for it, will only bring more harm than good to the citizens on the long run.
you are A band user, no wonder you can discredit subsidy, you are not on subsidy

My question, since they want to remove subaidy fully now, you think we all we be on Band A n enjoy 20hrs light, we are not both on subsidy we should get the same service, rite ? Is that feasible ? everybody 20hrs light on how many Megawatt

you guyz those think this thing through, subsidy ia gone, can yu swear that we resolve power failure or people won't still pay for darkness undecided
Re: FG To End Electricity Subsidy From 2027 by nairalanda1(m): 7:00pm On Aug 01
Skinnygee1:
Please,is band A subsidized? embarassed
Explaining the current subsidy arrangement, Sunday Oduntan, Executive Director of Research and Advocacy at the Association of Nigerian Electricity Distributors (ANED), pointed out that only customers in Band A pay the full cost of electricity. The government subsidises up to 67 percent of the cost for consumers in Bands B to E. However, he noted, the government has failed to pay these shortfalls, resulting in mounting debt.

“Today, only people in Band A pay the true cost of electricity. If you are in Bands B, C, D, or E, the government is subsidising your electricity consumption by as much as 67 percent, which means you are not even paying up to half of what you should be. And the so-called subsidy is not being paid by the government—it has become a shortfall that continues to pile up,” Oduntan said.

This implies a massive debt has accrued over the past decade and a half, owed to Distribution Companies (DisCos), Generation Companies (GenCos), and gas suppliers, exacerbating liquidity issues in the energy sector. These liquidity challenges particularly affect the GenCos and DisCos, the latter of which bear the brunt of consumer dissatisfaction during outages or service disruptions
.

Source: Businessday , June 9, 2025
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