We are gradually coming to a point in Nigeria when everyone will have to source for electricity supply for themselves.
The Nigerian Electricity Regulation Commission (NERC) needs money to upgrade its systems.
NERC after hiking electricity will not reverse its decision unless government intervenes through subsidies.
If the government disagrees the people must pay for power through their nose
The federal government has been told to pay ₦3.2 trillion to the electricity sector or forget about the electricity tariff hike reversal.
According to information gathered, the ₦3.2 trillion will be used to subsidise what consumers pay for electricity.
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Then and only then can there be a reversal of the announced electricity tariff hike.
Chairman of the Nigeria Electricity Regulatory Commission (NERC) Sanusi Garba made this known at a stakeholders meeting.
NERC Will Not Reverse Electricity Tariff
Garba revealed that the current investments in the power sector were not enough to guarantee a steady power supply.
He added that if nothing concrete is done to address issues in the sector, it will be heading for doom.
The chairman said due to non-payment of subsidies, gas supply and power generation have continued to dip.
Garba expressed concern that the continuous decline of generation and system collapse is largely linked to liquidity challenges.
The meeting was convened by the House of Representatives Committee on Power at the National Assembly Complex in Abuja on Thursday.
Garba said: “If NERC must reverse the electricity tariff hike, then the National Assembly and the Executive would have to provide ₦3.2 trillion for subsidies in 2024.”
Furthermore, the NERC boss said only ₦185 billion of the ₦645 billion subsidy in 2023 has been cash-backed, leaving a funding gap of ₦459. 5 billion.
Discussion Will Continue With Other Stakeholders
Chairman of the House Committee on Power, Victor Nwokolo said the meeting is aimed at addressing the recent increase in tariff and the issue of band A and others.
Nwokolo said the officials of NERC and DisCos have given the committee useful Information.
“We have not concluded with them because the Transmission Company of Nigeria was not here and the Generation Companies too.
“We will hold further consultations with them by next week.
But from what they have said, we can see that the industry lacks the capital to bring the needed change.
“Of course, with the population explosion in Nigeria, the areas being covered are beyond what they have estimated in the past.
So, they need to expand their network, and they need more money to do all that.”
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What this means is that unless the government is ready to pay for subsidies to the tune of ₦3.2 trillion consumers will have to pay through their noses.
This is coming at a time when the national grid has become accustomed to falling and plunging Nigerians into darkness.
