Minister of Power, Adebayo Adelabu, said that the implementation of a higher tariff band A has led to a decrease in electricity subsidy, reducing it from approximately N3 trillion to N1 trillion.
The statement was made by the minister during the public hearing on electricity rates in Abuja on Tuesday.
The House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation coordinated the hearing.
Mr. Adelabu mentioned that if there wasn’t a rise in electricity charges, the projected subsidy would have approached nearly N3 trillion.
He mentioned that the Federal Government was unable to cover the cost of N3 trillion in subsidies.
The minister highlighted that rather than accumulating debt for the government, the ministry devised a system allowing customers to cover the cost of subsidies in band A.
Based on his explanation, this will serve as a reimbursement for the gasoline and diesel that customers are currently utilizing.
