The Minister of Power, Adebayo Adelabu, says it would have been insensitive for the Nigerian government to continue paying 100 per cent electricity subsidy.
Adelabu disclosed this during a ministerial briefing in Abuja on Friday.
The minister spoke against the backdrop of the recent hike in electricity tariffs for customers who are getting 20-24 hours of power supply in Nigeria.
According to him, the hike will address the issue of liquidity affecting the power sector.
He noted that 85 per cent of electricity consumers will still get Federal Government power subsidies.
Adelabu added that an N2.9 trillion electricity subsidy in 2024 is too much of a burden for Nigeria.
“The recent tariff hike only affects 15 per cent of electricity customers. We have 12 million, but this tariff affected only 1.5 million customers.
“It is because the government is sensitive that 100 per cent of the subsidy will be removed. That is why we start with gradually removing the subsidy for the selected customers,” he said.
Recall that the Nigerian Electricity Regulatory Commission, NERC, on Tuesday approved a tariff hike for Band A customers.
