Subsidy paid on electricity witnessed reduction from ₦3 trillion to ₦1 trillion.
The reduction in the subsidy is as a result of the higher tariff paid by band A.
Adebayo Adelabu, Minister of Power, said this at the public hearing on electricity tariffs held in Abuja on Tuesday.
The hearing was organised by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation.
The minister said that instead of piling up debt for the government, the ministry came up with the model for customers to pay for subsidies on band A.
He added that we are still about the cheapest, even in sub-Saharan, in spite of the tariff.
“Our neighboring countries pay higher. So the price isn’t comparable.
“This will compensate for the fuel and diesel that consumers are using. He said that what consumers spend now is cheaper compared to fuel and diesel, even with the increase in electricity tariff.
“Band A is cheaper compared to other sources of generating power. It is almost 50 per cent cheaper to connect to band A of the national grid than to run on fuel and diesel. So when we complain about the higher tariff, it is cheaper for any business to pay for a grid connection than to individually generate power,”he said.
The minister said the increase in tariff was not targeted at making life difficult for Nigerians but to make life affordable for the people.
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