June 13, 2024
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Minister of Power Defends Electricity Tariff Increase

The Nigerian minister of power, Adebayo Adelabu, has addressed the controversy surrounding the recent electricity tariff increase, stating that the outcry is primarily from individuals who were not previously paying their electricity bills.

Speaking at the 8th Africa Energy Marketplace forum in Abuja on Thursday, Adelabu emphasized that the new tariff structure has resulted in a 30 to 40 percent reduction in energy costs for consumers in Band A, contrary to claims of increased production costs for manufacturers.

Adelabu refuted assertions that the tariff hike has exacerbated the high cost of goods and services, stating, “The electricity tariff was not targeted at improvising Nigerians or worsening the already bad economic situation…but targeted at resolving or reducing the hardship of the people.”

He urged consumers in Band A to conduct a comparative analysis of their energy expenses from grid supply and generator usage before and after the tariff review, noting significant savings.

Addressing concerns about the impact on manufacturing, Adelabu argued that manufacturers in Band A should experience lower energy costs, thereby reducing production expenses. He dismissed claims that the tariff increase would inflate production costs, citing his own experience in the industry.

Adelabu expressed frustration over Nigeria’s prolonged struggle with electricity provision despite abundant natural resources, urging for improved sector performance.

Meanwhile, Dr. Kevin K. Kariuki, Vice President of the African Development Bank (AFDB), announced plans to support Nigeria’s power sector with a $1 billion fund. The support will be directed towards ongoing power sector reforms and the implementation of the new Electricity Act.

Kariuki highlighted the bank’s commitment to financing policy recommendations aimed at achieving the goals outlined in the National Integrated Electricity Policy and Strategic Implementation Plan.

The announcement comes amid ongoing debates and controversies surrounding Nigeria’s energy sector, with stakeholders calling for sustainable solutions to address the country’s power challenges.

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