The amount spent on subsidizing electricity every month in Nigeria is now about N30bn, the Federal Government says.
It discloses that the government’s subsidy on electricity had been reduced by N20bn monthly following improvements in the collection of power tariffs by distribution companies.
The government states this in a document on the progress and overview of Nigeria’s power sector. The Minister of Power, Sale Mamman, states that the Federal Government is subsidizing electricity supply across the country to the tune of over N50bn monthly.
Mamman explains that the subsidy spending is because the government is worried by the incessant complaints by ordinary Nigerians over the unavoidable and periodic increase in the cost of electricity.
He says the funds were provided to augment the shortfall by the power distribution companies who had failed to defray the cost of bulk electricity supplied to them by the generating companies.
He had further explained that following a minor increase in the tariff regime, the subsidy decreased but still constituted a serious drain on the nation’s economy.
