… says it ‘ll avert N3.2trn electricity subsidy in 2024
The Nigeria Electricity Regulatory Commission (NERC) has warned against the reversal of the recent electricity tariff increase, noting that the increase became necessary to avert a N3.2 trillion electricity subsidy to be paid by the federal government in 2024 which would place a big burden on the country.
Sanusi Garba, the NERC Chairman, said this during a stakeholders meeting held by the House of Representatives Committee on Power on Thursday.
According to him, DISCOS were paying only 10 percent of their energy invoice as a part of their responsibility before the recent review in tariff.
He said that a liquidity challenge was being created in the electricity sector due to a lack of cash backing for subsidies.
He expressed disgust that non-payment of subsidies, gas supply, and power generation had continued to reduce.
Garba added that a decline in generation and system collapses had also been linked to the liquidity challenges in the sector.
The NERC chairman said that having a cost-effective tariff regime would sustain the sector, but not a total shutdown by the generation and distribution companies.
