Nigeria’s Federal Government has complained that the subsidy regime in which the country has found itself has caused it to commit 67 percent of the total cost of power production, transmission and distribution to the citizens.
“The subsidy is consuming more than 10 percent of the National budget. This is a burden on the country’s meagre revenue.”
The Minister of Power, Chief Adebayo Adelabu, made these points on Friday, April 5, in Abuja, when he featured on the Ministerial press briefing, anchored by the Minister of Information and National Orientation, Alhaji Mohammed Idris.
The Power Minister said that the recent increase in electricity tariff was for only consumers in the Band A category, “which is only 15% of consumers, while other customers will continue to enjoy the government subsidy.”
According to the Minister, the ministry is thinking of providing a cost-reflective tariff and to gradually migrate other consumers to the band A grade over three years.
“These consumers will enjoy 20 to 24 hours of electricity per day, and it is realistically cheaper at N225 per kilowatt than diesel and generating sets.”
Chief Adelabu said that the power sector currently needs to be more attractive to investors, complaining that there is an infrastructure deficit, which includes the availability of gas and the generation, transmission, and distribution of power. “These must be addressed for the sector to grow and benefit Nigerians.”
He said that a metering gap needs to be bridged and that all the issues stated can only be addressed by generating funds.
The minister said that the sector had been decentralized and that consumer protection is vital and that 20 hours must be achieved as promised.
“Anything else would attract consequences for the distribution company.”
He cautioned Nigerians to learn energy consumption management by getting value for money spent.
He said that the Ministry is rounding up generation, such as renewable energy and the Zungeru projects, and as well working hard to find creative ways to cut vandalism while installing new lines and injecting lines and investing in advocacy to educate consumers.
This was even as the minister of information promised to make relevant information about the government to Nigerians all the time.
He assured the media that the Federal Ministry of Information and National Orientation will continue to provide credible and timely information on government policies.
The Minister stressed the urgent need for the Ministry of Power to brief Nigerians on the recent review of the tariff regime in the power sector due to the citizens’ concerns.
He appreciated the media’s continued support of the Renewed Hope Agenda and emphasised the Power Sector’s relevance to the activities of every other sector in society.
According to Idris, with the removal of subsidies on petrol, the floating of the Naira and the inflation rate in the country, the government would not want to aggravate the sufferings of Nigerians.
He emphasized, however, the need for the government to overhaul the power sector and that the the government has taken the bold step to start the journey.
He pleaded for patience and understanding as the government is addressing the root cause of the problems of the Power Sector to provide consumers with the desired service.

The Nigerian Electricity Regulatory Commission (NERC) has taken enforcement action against the Abuja Electricity Distribution Plc (AEDC) by imposing a fine of N200 Million
for failure to comply with the prescribed customer band classifications for the tariff billing.
AEDC is also being punished for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC.
The decision to punish AEDC, according to NERC, was taken after a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices.
The regulatory body mandated AEDC to do the following immediately:
a. Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.
b. Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.
c. Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.
d. File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.
“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector,” NERC said in a statement.