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Nigerians Set To Pay Higher For Electricity Starting From July – Minister Of Power Reveals

The Minister of Power, Sale Mamman, has said that the new increment on electricity tariff will connence soonest in July.

Mamman made this known On Tuesday, At The Investigative Public Hearing On Power Sector Recovery Plan And The Impact On COVID-19 Pandemic, Organised By The Senate Committee On Power.

The Minister emphasized that the impact of the COVID-19 pandemic had also affected the plan for the repositioning of the electricity market toward financial sustainability under the Power Sector Recovery Programme.

He said following the completion of public consultation on tariff review, the regulator, Nigerian Electricity Regulatory Commission (NERC) had initially planned to conduct a tariff review in April 2020.

Howbeit, according to him, due to the COVID-19 outbreak and customer apathy, the proposed tariff review was delayed by three months.

He said:

“The impact of this means the subsidy being incurred in maintaining the current tariff level had to be maintained till July 2020 when the proposed tariff review will be implemented.

“The challenge we are currently facing in the development and expansion of our transmission line is budget and release of Federal Government’s commitment in the estimated sum of N32 billion primarily for Right of Way acquisition and environmental impact mitigation.

“The fund should be provided for in the 2020, 2021, and 2022 Appropriation of the Ministry of Power,” he added.

Mamman also said that the COVID-19 pandemic had a great economic impact, not just on the health sector, but the overall economy of the country.

He said:

“Indeed, the prevalence of the pandemic has already reduced productivity due to the strategy adopted globally to contain it.

“This by default affects the purchasing power of consumers and the demand for electricity in general.

“The current situation in the Nigerian Power Sector is that a lot of capital investment is being made, most of which is dependent on donor funding, loans and budgetary allocation.

“For projects that we have already secured their funding, we do not expect any adverse effect.”

He, however, said his ministry was proactively seeking strategies to identify projects that would require counterpart funding in the face of dwindling national revenue so as to deliver within the projected timelines.

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