The Federal Government of Nigeria has announced plans to redirect approximately N1 trillion in savings from the removal of electricity subsidies towards bolstering social services and enhancing power supply infrastructure nationwide.
This initiative comes following the signing of a new electricity act by President Tinubu, granting expanded authority to the Nigerian Electricity Regulatory Commission (NERC) to penalize power distribution companies (Discos) failing to fulfill contractual obligations.
Recall that the Federal Government, through the NERC, recently raised the energy rate for Band A consumers who get at least 20 hours of electricity daily to N225/KWh, an almost 300% increase.
During a radio program in Kaduna, Minister of Information, Mohammed Idris, underscored the importance of reinvesting subsidy savings into critical sectors such as power, healthcare, and education. He said, "It is essential to emphasize that the funds to be saved from the withdrawal of electricity subsidy will be reinvested in enhancing power supply across the country and improving other vital social services such as health and education."
Furthermore, the Minister affirmed that ongoing Federal Government interventions, including the cash transfer program for vulnerable Nigerians and the provision of Compressed Natural Gas (CNG) buses, remain on course.
Regarding the N25,000 cash transfer program, he disclosed that a presidential committee tasked with reviewing its operational framework has submitted its report, indicating that implementation will commence shortly.
