- FG set to offset electricity debt for MDAs and tariff shortfalls
- Budgets ₦327 billion in 2022 Budget
The Federal Government (FG) is set to offset the electricity debt of its Ministries, Departments and Agencies. In the 2022 Budget, the FG has set aside a total of ₦27 billion to clear the electricity bill arrears. In addition, the budget also sets aside ₦300 billion to clear the tariff shortfalls for the Distribution Companies (DisCos).
The Director-General of the Budget Office, Mr Ben Akabueze, speaking on the budgetary allocation, said, “On the contrary, because the electricity tariff that we all pay does not cover the cost of producing the power, there is a shortfall the government has to incur on behalf of the citizens. In 2022, the tariff shortfall is projected at ₦300 billion, and we provided for it. This is the money that we have to pay.”
“We provided another N27 billion for the MDAs electricity use. And that is government trying to lead by example. Many MDAs are defaulting in paying electricity bills.” Akabueze added.
Akabueze further stated that the FG, from now on, will implement stricter measures to ensure MDAs pay for electricity consumed as at when due. “While we are trying to resolve the historical situation, going forward we are going to tighten up and provide a mechanism where MDAs can’t incur utility or electricity debts and leave them behind. So, instead of us receiving from the DisCos from this budget, there is a provision in this budget to pay money to the DisCos,” he said.