The Senate on Wednesday, rejected the proposed plan by the Ministry of Power to increase electricity tariff in Nigeria.
The upper chamber also warned the executive arm of government against removing subsidy on electricity as being canvassed in some official quarters.
The Senate said removing subsidy on electricity in the country would be counterproductive considering the current hardship being experienced by Nigerians.
The resolution of the Senate followed the consideration and approval of a motion by Senator Aminu Abbas (PDP, Adamawa Central).
Abbas had, during plenary, moved a motion on the need to retain the subsidy on electricity in the county for the foreseeable future.
Last week, the Minister of Power, Adebayo Adelabu, disclosed at a press conference in Abuja that Nigeria was not likely to sustain the current electricity subsidy.
He had explained that the indebtedness of the country’s power sector to electricity-generating companies (GenCos) and gas companies (GasCos) had risen to over N3 trillion.
He had said: “Today, we owe a total of N1.3tn to the power generating companies, out of which 60 per cent is owed to gas suppliers. Today, we have a legacy debt, before 2014, to the gas companies of $1.3bn; at today’s rate, that is close to N2 trillion.”
Details later…
