FG May Scrap Power Subsidy Over Growing Debts — Ex-NERC Chairman

The Federal Government may be forced to withdraw electricity subsidies if mounting sector debts are not urgently addressed, former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, has warned. He said the increasing financial shortfall in the power sector is becoming unsustainable and poses a threat to electricity supply across the country.

Amadi explained that the subsidy payments are placing enormous pressure on government finances, especially as electricity distribution companies (DisCos) and generation companies (GenCos) continue to record low revenue collections. According to him, unless there is a drastic reform in tariff systems and proper metering of consumers, the government may soon have no choice but to remove the subsidy entirely to keep the sector afloat.

He noted that the ideal solution would be a gradual transition to cost-reflective tariffs combined with targeted support for the most vulnerable citizens.

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