-
Rich households benefit more from subsidy
- Data sourced from NERC, REA, and NBS
- Only 22% of poor homes have electricity supply
The World Bank has released its report on the Nigeria Power Sector Recovery Programme (PSRP). The report shows that poor-income households in the country are mostly without supply with only 22% with electricity supply and do not benefit from government subsidies.
The report shows that only 22% of the poorest in the country have access to electricity supply. It further shows that the government subsidy on electricity tariffs benefits the higher-income households more than the poorer ones. According to the report, ₦8 out of every ₦10 paid in electricity subsidies, goes to the rich. This negates the purpose of government subsidies in the sector.
The report also shows the electrification rate in the country per annum remains at 1.1% since 2010. With a growing population, the electrification rate shows, more and more people are left without access to electricity per annum. The report states that Nigeria currently has the largest number of unelectrified people in the world.
The bank based its report on the data from the National Bureau of Statistics (NBS), the Nigerian Electricity Regulatory Commission (NERC), and the Rural Electrification Agency (REA)(