The Federal Government of Nigeria says it is removing the subsidy on electricity for customers on Band A feeders in an effort to address the mounting debt in the power sector.

This decision has been met with criticism from Nigerians who are already experiencing severe hardship and grappling for survival as a result of the removal of fuel subsidies. The removal of fuel subsidies has led to skyrocketing prices of goods and services, including essential food items. Despite the outcry from the public, the government has proceeded with the tariff hike, disregarding the concerns of the Nigerian people.

The Minister of Power, Adebayo Adelabu, had expressed the government’s inability to sustain the subsidy and advocated for cost-reflective tariffs.

The Nigerian Electricity Regulatory Commission released the 2024 electricity tariffs, which showed that the government was to shoulder a subsidy of about N1.6tn for the year.

However, due to the increasing power debt and lack of liquidity in the industry, the government decided to remove the subsidy completely for Band A customers, resulting in a 240% tariff increase.

This move has faced criticism from Nigerians who view it as insensitive, especially considering that Band A customers, who constitute about 15% of power users, already have a relatively better electricity supply.

The government, however, has defended the tariff hike and stated that it will continue with the new tariff regime.

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