Nigeria’s Ministry of Power is urging citizens, particularly labour unions, to remain calm, giving an assurance that there are no immediate plans to increase electricity tariffs.
This comes after the Nigeria Labour Congress (NLC) and National Union of Electricity Employees (NUEE) expressed concerns over a potential tariff hike.
According to Tunji Bolaji, aide to the power minister, the government is instead focusing on addressing disparities in the current billing system to encourage investment in the power sector.
The minister highlighted the unfairness of some consumers paying N209 per kilowatt-hour for at least 20 hours of power, while others on Band B pay only N63 per kilowatt-hour for 16 hours or more.
“This disparity is too high,” he told this portal via phone.
Bolaji emphasised the need to address this disparity, stating that the federal government is struggling to fulfill its obligatory subsidy due to liquidity issues.
He noted that discussions around increasing efficiency have overlooked the fundamental challenge of sustaining the sector through liquidity since privatisation.
“Everyone is talking about increasing efficiency; the question should have been, since privatisation, why has it been difficult to sustain the sector through increased efficiency? It is liquidity,” he posited.
This development comes amid ongoing concerns about Nigeria’s power sector, including inefficiencies, high tariffs, and inconsistent supply, which have frustrated consumers and businesses alike.
Source: https://energynewsafrica.com
Discover more from Energy News Africa
Subscribe to get the latest posts sent to your email.