N3.2trn Subsidy Needed To Reverse Electricity Tariffs Hike – NERC

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The Nigeria Electricity Regulatory Commission (NERC) has said that the Federal Government must pay the sum of N3.2 trillion as subsidy for the electricity sector in 2024 to reverse the hike in electricity tariff.

NERC chairman, Sanusi Garba disclosed this at a stakeholders’ meeting convened by the House of Representatives Committee on Power at the National Assembly Complex in Abuja on Thursday.

Garba alerted that current investments in the power sector were not enough to guarantee steady power supply while adding that if nothing concrete was done to address issues in the sector, it would be heading for doom.

He stressed that before the recent review in tariff, Distribution Companies (DISCOS) were only obliged to pay 10 per cent of their energy invoice, adding that the lack of cash backing for subsidy is creating a liquidity challenge in the sector.

The chairman also said non-payment of subsidies was responsible for the continued dip in gas supply and power generation, adding that…



Source: Leadership Newspaper