The Chairman of the Nigeria Electricity Regulatory Commission, Sanusi Garba, on Thursday, said the Federal Government of Nigeria will need about N3.2trn in 2024 to reverse the recent hike in electricity tariff.
He added that if a total sectoral overhauling was not carried out, including fluctuation in foreign exchange, power supply in Nigeria would continue to pose a challenge.
Speaking in Abuja at a stakeholders meeting convened by the House of Representatives Committee on Power, Garba said that current investment in the sector, though commendable, was not good enough to guarantee a steady power supply across the country.
He further explained that between January 2020 and January 2023, the electricity tariff increased from 55 per cent to 94 per cent adding that “the unification of forex and current inflationary pressures are pushing cost reflective tariff to N184/kwh
He said, “If sitting back and doing nothing is the way to go, it would mean that the National Assembly and the Executive would have to provide about N3.2 trillion to pay for subsidy in 2024.”
Garba also said that only N185 billion of the N645 billion subsidy in 2023 has been cash-backed, leaving a funding gap of N459. 5 billion.
