By Francis Ogwo
Over N50 billion is spent by the Federal Government in subsidizing electricity supply across Nigeria.
The Minister of Power, Mr Sale Mamman made this disclosure in a statement delivered by his Special Adviser, Media and Communications, Mr Aaron Artimas, while receiving delegates of the Guild of Actors and Film Producers, popularly called Kannywood in his office.
The Minister was quoted as stating that the FG subsidizes the costs due to the rising costs of power in Nigeria, citing that the subsidies are provided to support the DisCos.
“Worried by the incessant complaints by ordinary Nigerians over the unavoidable and periodic increase in the cost of electricity, the Federal Government has been subsidising electricity supply in the country to the tune of over N50 billion.
“The funds are provided to augment the shortfall by the Distribution Companies (DiSCos) who have failed to defray the cost of bulk electricity supplied to them by the Generating Companies.
“However, following a minor increase in the tariff regime, the subsidy has now decreased by half, but still constitutes a serious drain on the nation’s economy,” Mamman stated.
Speaking further in the statement, the Minister added that the DisCos were privatised before Buhari’s administration came to power. He also stated that “the government has no alternative than to continue managing the sector before a final solution is secured.”
“Through the Presidential Power Initiative and other intervention measures, the government is diligently working to massively resolve all these inherited problems that have continuously frustrated the success of the sector,” he added.
It would be recalled that the World Bank approved $500 million to support Nigeria in improving electricity distribution in the country.
