In a recent address at a convened stakeholders meeting spearheaded by the House of Representatives committee on Power, Sanusi Garba, the Chairman of the Nigeria Electricity Regulatory Commission (NERC), underscored the necessity of a staggering N3.2 trillion subsidy injection to revert the recent surge in electricity tariffs. Garba underscored the insufficiency of current investments in the power domain to ensure consistent power provision.
He forewarned of impending sectoral peril should persistent challenges such as currency fluctuations and gas payment delinquencies remain unaddressed. Garba highlighted a disconcerting trend wherein Distribution Companies (DISCOS) were hitherto mandated to remit only 10 percent of their energy invoices, exacerbating liquidity constraints due to subsidy funding shortfalls. The ripple effects of subsidy arrears, as elucidated by Garba, are evident in dwindling gas supplies and diminished power generation.
Echoing Garba’s sentiments, Vice Chairman Musiliu Oseni defended the tariff hike as imperative for salvaging the sector from total collapse. Victor Nwokolo, Chairman of the House Committee on Power, acknowledged the valuable insights provided by NERC and DISCOS officials, asserting their pivotal role in tackling the sector’s pressing challenges.
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