Senate Begs FG To Ditch Plan To Remove Electricity Subsidy

Senate tells Tinubu's govt to retain electricity subsidy due to economic hardship

Amidst the ongoing hardships in the nation, the Senate on Wednesday urged the federal government to maintain the electricity subsidy.

The Senate made its decision following consideration and approval of a motion in a plenary session regarding the need to continue the nation's electricity subsidy for the foreseeable future.

Senator Aminu Lya Abbas of the PDP, who represents Adamawa Central, made the motion.

The Senate also decided to look into the Ministry of Power's, the Nigeria Electricity Regulatory Commission's, and Ziglaks Company's involvement in the unfulfilled prepaid meter supply agreement in order to prevent Nigeria from suffering unfairly.

The Senate on Wednesday urged the federal government to continue providing the electricity subsidy in light of the ongoing issues facing the country.

The Federal Government stated earlier this week that it is now “extremely difficult” to continue the electricity subsidy, citing the nation's steadily rising power debt.

Nigeria's Minister of Power, Adebayo Adelabu, declared that the country must move to tariffs that represent true costs.

See: Electricity Subsidy Has To End — Power Minister [VIDEO]

He disclosed debts to gas suppliers of $1.3 billion and to companies that generate electricity of N1.3 trillion.

Adelabu stated that although the 2024 budget calls for an electricity subsidy of N450 billion, the Nigerian Electricity Regulatory Commission's analysis predicts that the cost of the subsidy will skyrocket to N2.9 trillion in the same year.