By Seyi Babalola
Defending the recent increase in electricity tariffs, which has sparked outrage and opposition from Nigerians, Minister of Power, Mr. Adebayo Adelabu, said on Tuesday that the introduction of higher tariffs for Band A users has reduced the government’s electricity subsidy from approximately N3 trillion to N1 trillion.
Adelabu made the announcement on Tuesday at a public hearing on energy prices in Abuja organized by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation.
Adelabu added that without a rise in energy rates, the estimated subsidy would have been almost N3 trillion and that the Federal Government could no longer handle the expense of N3 trillion in subsidies.
Adelabu, who noted that despite the increase in electricity tariffs, the cost of energy remains lower than that of premium motor spirit and diesel, stated that Nigeria has the lowest electricity pricing in Sub-Saharan Africa.
“We are still about the cheapest, even in sub-Saharan, in spite of the tariff. Our neighboring countries pay higher. So the price isn’t comparable.
“Band A is cheaper compared to other sources of generating power. It is almost 50 per cent cheaper to connect to band A of the national grid than to run on fuel and diesel.
“So when we complain about the higher tariff, it is cheaper for any business to pay for a grid connection than to individually generate power,” he said.
