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Electricity subsidy, N30b per month – FG

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FEDERAL Government has said that Nigeria was subsidising electricity consumption by about N30 billion every month.

  Minister of Power, Sale Mamman, disclosed this in a document released on the progress and overview of Nigeria’s power sector.

  According to the document, the government’s subsidy on electricity had been reduced by N20 billion monthly following improvements in the collection of power tariffs by distribution companies.

  In February this year, the stated that the federal government was subsidising electricity supply across the country to the tune of over N50 billion monthly.

  However, in the document on the progress of the sector sighted in Abuja, on Tuesday, the government revealed that its subsidy on electricity had dropped by N20 billion monthly.

  Providing explanation on current electricity market collections in the document, the government said, “Tariffs rose by 36 per cent from September 2020. Collections have grown by 60 per cent plus.

  “Government subsidy has been reduced by N20 billion per month. Record collections of N65 billion hit in December 2020 cycle (from average of N39 billion).

  Aside from subsidising electricity, the Nigerian government also subsidises Premium Motor Spirit, popularly called petrol, despite calls against this by both local and international organisations and experts.

  Earlier this month, for instance, the International Monetary Fund expressed concern over the resurfacing of subsidies in Nigeria.

  The global institution described the development as concerning, particularly in the context of low revenue mobilisation.

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