The Senate on Wednesday urged the federal government to retain the electricity subsidies despite the country’s persistent problems.
The Senate made its decision after considering and approving a motion in plenary regarding the importance of keeping the country’s power subsidies in place for the foreseeable future.
The motion was introduced by Aminu Iya Abbas, a PDP Senator from Adamawa Central.
Senator Iya Abbas, together with 10 other senators, expressed concern about the N1.3 trillion debt owed to power-generating firms and the $1.3 million owed to gas companies by the Ministry of Power.
The Senate also resolved to investigate the Ministry of Power, the Nigeria Electricity Regulatory Commission, and Ziglaks Company’s participation in the unmet agreement to deliver prepaid metres, with the goal of preventing Nigeria from being disadvantaged.
Earlier last week, the Federal Government, made it clear that sustaining the electricity subsidy is now “very difficult,” pointing out the continuous increase in the country’s power debt.
Adebayo Adelabu, Nigeria’s Minister of Power, stated the necessity for the country to shift towards tariffs that reflect actual costs.
He revealed debts amounting to N1.3 trillion to electricity generating firms and $1.3 billion to gas providers.
According to Adelabu, the 2024 budget plans for an electricity subsidy of N450 billion, but he highlighted that the Nigerian Electricity Regulatory Commission’s findings forecast the subsidy expense to soar to N2.9 trillion within the year.