The Minister of Power, Adebayo Adelabu, has disclosed that the Federal government has expended N700 billion to subsidize electricity thus far. Adelabu emphasized that the current tariff set for Distribution Companies (DISCOs) is not cost-reflective, necessitating ongoing government subsidies.
During his official visit to the Ibadan Electricity Distribution Company (IBEDC) Head Office in Ibadan, Adelabu highlighted the government's commitment to electricity subsidy, citing the projected cost of N1.7 trillion in 2023 if tariffs remain unchanged. He explained that before any tariff adjustment, there would be a need for sensitization and advocacy to justify the revision. Adelabu proposed a "graduated" tariff review, with a higher increase for the high-income segment and reduced rates for vulnerable groups.
Adelabu stressed the importance of improved power supply as a prerequisite for any tariff review, stating, "There must be an upward review of the electricity tariff to reduce the amount of subsidy required." He acknowledged the potential burden on the public if tariffs were made 100 percent cost-reflective and expressed the government's intention to implement a measured tariff adjustment to alleviate the impact on citizens.
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