- Etomi says electricity subsidies must target the vulnerable in the sector.
- The Federal Government intends to subsidise electricity for Nigerians in December 2023 due to the current economic downturn in the country.
In a recent interview with CNBC Africa, the Chairman of Wester and Gas, George Etomi, said the N900 billion the Federal Government plans to spend on electricity subsidy should go to the vulnerable. According to him, the Federal Government intends to subsidise electricity for Nigerians in December 2023 due to the current economic downturn in the country.
Etomi, however, said that though subsidies are not new, they must target the most vulnerable in the sector. He stressed his expectations of issuing electricity subsidies that will not distort the economics of the entire value chain to retain market confidence.
He added, “This is not the first time it has happened in the electricity market. The effect on the market is that because we are running a contract-based market, risk allocation should always get to whoever is best placed to carry that risk. If the government subsidises the market, that risk allocation should go to them.”
The chairman stated that the electricity regulator must get involved to avoid eroding market confidence. He noted that Nigeria’s electricity sector has spent a long journey towards getting the privatised sector working. Etomi further said that there are contracts in place among the sector players, and it is important that there is no distortion that impedes the appetite of investors coming into the sector.