The Nigerian Senate has firmly opposed the Ministry of Power’s proposed plan to hike electricity tariffs. This decision was made public on Wednesday, marking a significant pushback against the executive government’s potential removal of electricity subsidies.
The Senate argues that the removal of such subsidies would be detrimental, especially considering the current economic difficulties faced by Nigerians. The decision was reached following a motion put forward by Senator Aminu Abbas of the People’s Democratic Party, representing Adamawa Central.
During a plenary session, Senator Abbas advocated for the retention of the electricity subsidy in the country for the foreseeable future. This motion was subsequently considered and approved by the Senate.
Contrarily, Adebayo Adelabu, the Minister of Power, revealed at a press conference in Abuja last week that the sustainability of the current electricity subsidy is unlikely. He attributed this to the escalating debt of the country’s power sector, which has now exceeded N3 trillion.
Adelabu further explained, “We currently owe N1.3 trillion to power generating companies, 60% of which is owed to gas suppliers. We also have a legacy debt to gas companies of $1.3 billion prior to 2014; at today’s rate, this amounts to nearly N2 trillion.
