The Federal Government has announced that the increment on electricity tariff would start in July. The increment which was supposed to commence three months earlier, was shifted to July due to the COVID-19 pandemic in the country.
Minister of Power, Sale Mamman made this known on Tuesday at the Investigative Public Hearing on Power Sector Recovery Plan and the impact of COVID-19 pandemic organised by the Senate Committee on power in Abuja.
He said, “The challenge we are currently facing in the development and expansion of our transmission line is budget and release of federal government’s commitment in the estimated sum of N32bn primarily for right of way acquisition and environmental impact mitigation.
“The fund should be provided for in the 2020, 2021, and 2022 Appropriation of the Ministry of Power.” The impact of this means the subsidy being incurred in maintaining the current tariff level had to be maintained till July 2020 when the proposed tariff review will be implemented.
Mamman said, “Indeed, the prevalence of the pandemic has already reduced productivity due to the strategy adopted globally to contain it. “This by default affects the purchasing power of consumers and the demand for electricity in general.
“The current situation in the Nigerian power sector is that a lot of capital investment is being made, most of which is dependent on donor funding, loans and budgetary allocations. “For projects that we have already secured their funding, we do not expect any adverse effect.”
Meanwhile, stakeholders have called on the federal government to suspend the plan, as citizens cannot be made to pay more for ineffective power supply.