Thursday, April 18, 2024

Suspend Plans to Remove Subsidy on Electricity- Senate

The Nigerian senate has asked the federal government to drop the plan to remove subsidies on electricity.

The upper legislative chamber took the position after Aminu Iya Abbas, senator representing Adamawa central, and 10 others sponsored a motion against the removal of electricity on Wednesday.

The red chamber asked its committee on power to probe a claim by Adebayo Adelabu, minister of power, that the federal government owes N1.3 trillion and $1.3 billion to generating companies (GenCos) and gas companies.

Last week, Adelabu said Nigeria’s debt to generation and gas companies is now N3 trillion, adding that paying subsidy on electricity was no longer sustainable.

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While moving the motion, Abbas said the electricity tariff could not be increased because a large number of Nigerians are living below the “poverty line”.

“In addition to the high cost of living being experienced in the country, the unmetered customers who are owners of small and medium enterprises are adversely impacted by this level of exorbitant electricity charges and by implication have their businesses affected,” the senator said.

“While the prospect of the new electricity act, 2023 of ensuring accurate electricity charges will be negated if DISCOs are not investigated to ascertain the current statistical data on unmetered customers, poor provision of electricity service despite exorbitant tariff and regulatory role of NERC which leaves much to be desired.”

The senate asked the Nigerian Electricity Regulatory Commission (NERC) to come up with a lasting solution to the energy billing system.

The upper legislative chamber resolved to investigate the federal government’s directive on mass metering.

The senate has asked the federal government of Nigeria to drop the plan to remove subsidies on electricity.

The upper legislative chamber took the position after Aminu Iya Abbas, senator representing Adamawa central, and 10 others sponsored a motion against the removal of electricity on Wednesday.

The red chamber asked its committee on power to probe a claim by Adebayo Adelabu, minister of power, that the federal government owes N1.3 trillion and $1.3 billion to generating companies (GenCos) and gas companies.

Last week, Adelabu said Nigeria’s debt to generation and gas companies is now N3 trillion, adding that paying subsidy on electricity was no longer sustainable.

While moving the motion, Abbas said the electricity tariff could not be increased because a large number of Nigerians are living below the “poverty line”.

“In addition to the high cost of living being experienced in the country, the unmetered customers who are owners of small and medium enterprises are adversely impacted by this level of exorbitant electricity charges and by implication have their businesses affected,” the senator said.

“While the prospect of the new electricity act, 2023 of ensuring accurate electricity charges will be negated if DISCOs are not investigated to ascertain the current statistical data on unmetered customers, poor provision of electricity service despite exorbitant tariff and regulatory role of NERC which leaves much to be desired.”

The senate asked the Nigerian Electricity Regulatory Commission (NERC) to come up with a lasting solution to the energy billing system.

The upper legislative chamber resolved to investigate the federal government’s directive on mass metering.

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