The Federal Government expends an estimated sum of N30bn monthly subsidising electricity in Nigeria, Checkout Magazine learnt.
It disclosed that the government’s subsidy on electricity had been reduced by N20bn monthly following improvements in the collection of power tariffs by distribution companies.
The above information was contained in a document on the progress and overview of Nigeria’s power sector.
In February this year, the Minister of Power, Sale Mamman, stated that the Federal Government was subsidising electricity supply across the country to the tune of over N50bn monthly.
However, in the document on the progress of the sector sighted in Abuja on Tuesday, the government revealed that its subsidy on electricity had dropped by N20bn monthly.
Providing explanation on current electricity market collections in the document, the government said, “Tariffs rose by 36 per cent from September 2020. Collections have grown by 60 per cent plus.
“Government subsidy has been reduced by N20bn per month. Record collections of N65bn hit in December 2020 cycle (from average of N39bn).”
