Nigeria’s Minister of Power, Adebayo Adelabu, has described how the implementation of a higher tariff for band A customers has led to a decrease in electricity subsidy.
According to him, the measure reduced the subsidy from approximately ₦3 trillion to ₦1 trillion.
The Minister made this known on Tuesday in a statement during the public hearing on electricity rates in Abuja.
The public hearing was put together by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation.
According to Adelabu, the government would have had to pay subsidies in the region of ₦3 trillion if the electricity tariff was not increased, but with the increased tariff, the government has devised a system for customers to cover the cost of subsidies in band A.
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