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From Isaac Anumihe, Abuja
Federal Government said that it spends over ₦200 billion per month on electricity subsidies.
In a statement, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, however, regretted that only 25 per cent of Nigerians who are the wealthy benefit from the support rather than those who truly need assistance.
So, to address the challenge, the Federal government is working towards a targeted subsidy system to ensure that the low-income households receive the most support.
“This approach will make electricity more affordable and accessible for millions of hardworking families.
Furthermore, the Federal Government is addressing one of the major roadblocks to improve service.
For years, the debts owed to power generation companies, he said, .have prevented investments in new infrastructure and hampered efforts to improve electricity supply.
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By clearing these outstanding obligations, Verheijen, explained, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians.
The Special Adviser observed that one of the most significant steps in the reform is the Presidential Metering Initiative, which is accelerating the nationwide rollout of 7 million prepaid meters, starting this year.
“This will finally put an end to the practice of estimated billing, giving consumers confidence in what they are paying for and ensuring transparency in electricity charges.
Metering will also improve revenue collection across the sector and will attract the investments needed to strengthen Nigeria’s power infrastructure” he said
On the reduction of costs for alternative power generation, the government noted that through a range of fiscal incentives, including Value Added Tax (VAT) and customs duty waivers, the Federal Government is working to lower the cost of alternative power sources such as Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG).
“The government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s daily lives.
“Every policy is designed with the Nigerian people in mind — eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity.
“These reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians” the statement, noted. ENDS
