FG To Reinvest Savings From Electricity Subsidy Removal In Social Services, Improving Power Supply

The Federal Government has said it would reinvest savings from electricity subsidy removal in the provision of social services and to improve the power supply in the country.

The Minister of Information and National Orientation, Mohammed Idris, stated this on Saturday during an interview programme on Radio Nigeria in Kaduna State.

Idris said the N1 trillion is expected to be saved from the removal of electricity subsidy and will be used to provide vital social services such as health and education.

He said the disproportionate amount of electricity subsidy (approximately 40 per cent) benefits only about 15 per cent of the consumers, comprising affluent individuals and industrial clusters, which enjoy about 20 hours of power supply.

“It is essential to emphasize that the funds to be saved from the withdrawal of electricity subsidy will be reinvested in enhancing power supply across the country and improving other vital social services such as health and education,” the minister said.

Idris said  85 percent of the population under the different categorisations of the new electricity supply regime still enjoy the subsidy.

He said the new Electricity Act, signed by Tinubu, has strengthened the governance structure of the Nigerian Electricity Regulatory Commission (NERC).

The minister said the also empowers NERC to severely sanction electricity distribution companies (DisCos) for infractions relating to billings and power supply.

Commenting on the post-petrol subsidy intervention programmes, Idris said the federal government’s plan to invest N100 billion in the procurement of compressed natural gas (CNG) buses is still on track, noting that the specifications of the vehicles are “not bought off the shelf”.

He said the government would soon launch conversion centres across the country to encourage Nigerians to convert their vehicles from fuel to CNG to cut transportation costs.