Following the recent hike in electricity tariff for Band A subscribers, the Federal Government (FG) has projected that it would save an estimated N1.5 trillion this year.
The FG promised that an estimated 2.5 million meters would be installed this year for customers who have not been metered. This would be an effort to close the metering gap that has persisted nationwide over the years. Also, metering consumers ensures that they all pay the right amount for the electricity they consume.
On April 2, 2024, Bayo Onanuga, the Special Adviser to the President on Information and Strategy, announced that the Nigerian government’s decision to remove electricity subsidies from 15% of power consumers could result in an annual saving of approximately N1.1 trillion.
Onanuga emphasized that the Bola Tinubu-led administration was committed to implementing the price increase in electricity, citing the allocation of N450 billion in the 2024 budget for energy subsidies.
However, in a document that emanated from the Federal Ministry of Power on Wednesday, Bolaji Tunji, the media aide to the power minister, revealed that the government anticipates saving N1.5 trillion through the recent tariff adjustment.
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Part of the document reads, “FG (Federal Government) to save N1.5tn with tariff adjustment. FG still subsidising Bands below A. Pricing change will help improve liquidity to the NESI (Nigeria Electricity Supply Industry).
“Discos (power distribution companies) will be sanctioned for supplying less than 20 hours to Band A consumers.
“The Presidential Meter Initiative aims to install a minimum of 2 – 2.5 million meters yearly within the next five years”.
A report that the Nigeria Electricity Regulatory Commission (NERC) released in September 2023 showed that there are about 12,825,005 electricity subscribers in Nigeria. Out of which only 5,707,838 had prepaid installed on their premises. This shows that about 7.1 million subscribers are still paying electricity via the estimated billing system.