Government Announces Plans To Channel Electricity Subsidy Savings Into Social Services And Power Infrastructure

The Federal Government has announced its commitment to utilize savings from the removal of electricity subsidies to bolster social services and enhance the nation’s power supply. Speaking during a radio interview in Kaduna State, Minister of Information and National Orientation, Mohammed Idris, highlighted that approximately N1 trillion is anticipated to be saved from this initiative. These funds will be directed towards essential social sectors such as healthcare and education.

Idris emphasized that the removal of electricity subsidies, which predominantly benefit affluent individuals and industrial clusters, will pave the way for a more equitable distribution of resources. He underscored the importance of reinvesting these savings into improving electricity access nationwide and fortifying crucial social services.

Under the new electricity supply framework, Idris noted that 85 percent of the population will continue to benefit from subsidies. He also highlighted recent legislative measures, including the strengthening of governance structures within the Nigerian Electricity Regulatory Commission (NERC) and empowering NERC to impose severe penalties on electricity distribution companies for billing irregularities and service deficiencies.

Addressing the government’s initiatives beyond petroleum subsidy reforms, Idris reaffirmed plans to invest N100 billion in procuring compressed natural gas (CNG) buses. He emphasized the development of conversion centers nationwide to encourage the adoption of CNG-powered vehicles, aiming to reduce transportation costs for Nigerians.

The government remains committed to promoting sustainable energy solutions and enhancing access to vital services for all citizens.

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