- FG to end electricity subsidies in 2022
- To invest over $3 billion in transmission, distribution infrastructure
- Collections improved by 63%
Vice President Yemi Osibanjo has stated that the Federal Government will end electricity tariffs by 2022. Special Assistant to the President on Infrastructure, Ahmed Zakari, who represented the Vice President at the Nigerian Association for Energy Economics (NAEE) Conference, stated that the FG would end the ₦30 billion subsidy payments next year.
”Electricity tariff reforms with a service-based tariff has led to collections from the electricity sector by 63%, increasing revenue assurance for gas producers and stabilizing the value chain,” Zakari stated. ”It is anticipated that all electricity market revenues will be obtained from the market with limited subsidy from next year as reforms in metering and efficiency with the DISCOs continue to improve,” he added.
The Federal Government will also invest $3 billion in infrastructural development in the sector. ”Accelerated investment in transmission and distribution, over $3 billion will be out into this sub-segment of the electricity value chain that will put us on the path to delivering 10 gigawatts through the interventions of the Central Bank of Nigeria, Siemens partnership, World Bank and Africa Development Bank, and others,” Zakari stated.
Zakari further noted the administration’s commitment to improving the electricity sector in Nigeria.