The Nigerian Senate has strongly opposed the proposed plans by the Ministry of Power to raise electricity tariffs. Additionally, the Senate has rejected proposals to eliminate subsidies on electricity, citing the current economic challenges facing the nation.
The Senate’s stance was reached following a motion presented by Senator Aminu Abbas of the People’s Democratic Party (PDP), representing Adamawa Central. Senator Abbas emphasized the necessity of maintaining electricity subsidies in light of the prevailing hardships experienced by Nigerians.
The rejection of the proposed tariff hike and subsidy removal comes in response to statements made by the Minister of Power, Adebayo Adelabu, during a press conference in Abuja. Minister Adelabu had expressed concerns about Nigeria’s inability to sustain the current electricity subsidy, citing the significant indebtedness of the country’s power sector to electricity-generating and gas companies, which stands at over N3 trillion.
Addressing the pressing issue, Minister Adelabu stated, “Today, we owe a total of N1.3tn to the power generating companies, out of which 60 per cent is owed to gas suppliers. Today we have a legacy debt, before 2014, to the gas companies of $1.3bn; at today’s rate, that is close to N2 trillion.”
