FGN moves towards a targeted subsidy system in bid to make electricity more affordable and accessible
The Special Adviser to the President on Energy, Olu Verheijen, during an interview with Bloomberg in Dar es Salaam, Tanzania. Verheijen stated that the FGN plan to transition to a cost-efficient but cost-reflective tariff, to ensure the sector generates revenue required to attract private capital while also protecting the poor and vulnerable.
Furthermore, she stated that the current tariffs cover approximately 65 per cent of the actual cost of supplying electricity, with the federal government continuing to subsidise the difference.
Over N200 billion is spent monthly on electricity subsidies, but much of this support benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance.
To address this, the federal government is working towards implementing a targeted subsidy system to ensure that low-income households receive the most support. This approach aims to make electricity more affordable and accessible for millions of hardworking families.
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