…Powe Minister says the policy would take effect in 2027
President Bola Tinubu’s government is set to remove electricity subsidy. The plan will see Nigerians pay more for electricity.
Minister of Power, Joseph Tegbe, at the inauguration of a 3-megawatt solar hybrid power project at the Yakubu Gowon University, on Wednesday, said the Tinubu administration would remove electricity subsidy by 2027.
Mr. Tegbe said, “We have the mandate of Mr President to clear the legacy debt and come up with sustainale structures to make sure this doesn’t pile up any more.
“I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector. Mr. President, we will not deprive Nigerians of anything. We’ll make sure Nigerian consumers continue to have power and improve power services.”
The planned electricity subsidy removal comes as Nigerians still grapple with the effects of subsidy on fuel. A decision that has seen transportation, food and general cost of living increase since the announcement by Mr Tinubu during his inauguration on May 29, 2023.
With Nigerians on N70,000 minimum wage currently buying per litre of fuel for as much as 1,500, electricity subsidy removal could plunge more Nigerians into poverty.
The World Bank in its Nigeria Development Update report for 2025 projected that “inflationary pressure, particularly food prices,” will plunge about 141 million Nigerians into poverty by 2026.
Though the World Bank lauded Mr. Tinubu’s government for taking important steps toward stabilising the country’s economy through its policy reforms, it said “more needs to be done to ensure these gains translate into better living standards for its citizens.”
SOURCE: diplomaticinfo.com