The Minister of Power, Sale Mamman, has said that the proposed electricity tariff increase by the Federal Government will kick off in July.

In January, the Nigerian Electricity Regulatory Commission (NERC) had announced an upward review of electricity tariff across the country from April 1. It later suspended the proposed tariff increase in March due to the COVID-19 pandemic.

However, while speaking at the investigative public hearing on the power sector recovery plan and the impact on COVID-19 pandemic at the Senate on Tuesday, June 16th, 2020, the Minister said the subsidy incurred in order to maintain the current tariff level is unsustainable.

The impact of the COVID-19 pandemic has also affected our laid-out plan for the repositioning of the electricity market towards financial sustainability under the power sector recovery programme (PSRP).

Initially, the regulator, following the completion of public consultation on tariff review, planned on conducting a tariff review in April 2020. However, due to COVID-19 and customer apathy, the proposed tariff review was delayed by three months.

The impact of this means the subsidy being incurred in maintaining the current tariff level had to be maintained until July 2020 when the proposed tariff review will be implemented. The current situation in the Nigerian power sector is that a lot of capital investment is being made, most of which is dependent on donor funding, loans and budgetary allocation.

F

or projects that we have already secured their funding, we do not expect any adverse effect.

Mamman said

Justin Nwosu

Justin Nwosu is the founder and publisher of Flavision. His core interest is in writing unbiased news about Nigeria in particular and Africa in general. He’s a strong adherent of investigative journalism, with a bent on exposing corruption, abuse of power and societal ills.