FG spent just N700 billion on electricity subsidy in 2023 — Minister of Power.

FG spent just N700 billion on electricity subsidy in 2023 — Minister of Power.

January 15, 2024 0 By Fasholu Gabriel Oluwatobi

The Minister of Power, Adebayo Adelabu, has revealed that the F.G spent close to N700 billion in 2023 to subsidize electricity.

He said, “As it is today, the F.G still subsidises electricity because the current tariff DISCOs are allowed to charge is not cost-reflective.

This is why the F.G spent close to N700 billion in 2023 to subsidise electricity. If tariffs are left at this current rate, it is projected that the government will spend about N1.7 trillion to subsidise electricity. The FG cannot afford that.”

Mr. Adelabu made these remarks during his official working visit to IBEDC Head Office on Monday.

“There must be an upward review of the electricity tariff in order to reduce the amount of subsidy required. If we make the tariff 100 % cost-reflective, the burden will be too much on our people. We don’t want that. To reduce the burden on our people, it is only a fraction of the tariff review that will be reflected.”

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