Ngozi Amuche
Federal Government, says it can no longer continue to shoulder the burden of paying subsidy in the country’s electricity sector, noting that it has paid over N1.5 trillion to subsidise the sector in the last four years.
Speaking on the second day of the Business Day Energy Series, tagged, ‘Harnessing Nigeria’s Energy Potential for the Future,’ Minister of Power, Mr. Sale Mamman, explained that the yearly quantum of under-recovery paid to the Distribution Companies (Discos) as subsidy was higher than the budget on health and education combined.
The minister in the keynote address, delivered on his behalf by his Special Adviser on Policy, Mr. Abbah Aliyu, insisted that the subsidy was for the rich, noting that the over 80 million Nigerians without power supply were being short-changed by wealthy Nigerians.
He said, “It’s pertinent to say that the Federal Government has paid over N1.5 trillion subsidising the power sector since 2015. This amounts to a monthly spending of N12 billion.
“This subsidy cost was also N165 billion in 2015 and suddenly it increased to N548 billion in 2019 and the performance of the Discos keeps fluctuating and if we continue with this subsidy payment, more payment will become crystallised as there will be more Disco retention due to the infrastructure challenges in the sector.
“If you look at the quantum of this subsidy, it’s higher than the budget of the ministries of education and health combined”