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Thursday, June 13, 2024

Minister of Power Adebayo Adelabu highlighted the Federal Government’s substantial expenditure of nearly N700 billion in 2023 to subsidize electricity.

In his recent visit to the Ibadan Electricity Distribution Company, Minister of Power Adebayo Adelabu highlighted the Federal Government’s substantial expenditure of nearly N700 billion in 2023 to subsidize electricity.

This financial commitment stems from the existing disparity between the current non-cost-reflective tariffs permitted for DISCOs and the actual operational costs.

Adelabu asserted the impracticality of sustaining such subsidies, projecting a potential increase to N1.7 trillion without tariff adjustments.

To address this, Adelabu advocated for an upward revision of electricity tariffs, emphasizing that a 100% cost-reflective tariff would burden the populace excessively.

Instead, he proposed a phased tariff review, ensuring that the impact on citizens is minimized.

The graduated approach involves higher tariff increases for the high-income demographic, while shielding the vulnerable from substantial changes.

Adelabu also highlighted the need for sensitization and advocacy before implementing any tariff adjustments, aiming to justify the necessity of the proposed changes to the public.

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