FG urged to scrap electricity subsidies for all customers
The Managing Director of the Niger Delta Power Holding Company, Jennifer Adighije, has called for the removal of electricity subsidies in Nigeria, advocating for cost-reflective tariffs to stabilize the power sector.
Jennifer Adighije, the Managing Director and CEO of the Niger Delta Power Holding Company, has urged the Nigerian Federal Government to eliminate electricity subsidies for all users and instead adopt fully cost-reflective tariffs. This proposal aims to address the longstanding structural and liquidity issues affecting the countryโs electricity market. Adighije's statement comes in light of significant financial constraints that hinder the performance and growth potential of Nigeria's power sector.
In her advocacy, Adighije emphasized the need to separate government subsidies from electricity tariffs. She argues that this decoupling is necessary to establish a financially viable electricity market that can regain investor confidence and encourage private sector participation. By implementing cost-reflective tariffs gradually, the sector could move towards sustainability, ultimately leading to improved service delivery and reliability for consumers.
Moreover, the MD highlighted ongoing liquidity challenges, indicating that only a fraction of the market is currently viable. Addressing these issues through the removal of subsidies and the introduction of transparent tariffs is critical for attracting investments needed to modernize Nigeria's electricity infrastructure and ensure a stable power supply for the future.