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FG to spend $600m annually on electricity subsidy
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The Federal Government has announced plans to introduce an annual electricity subsidy of $600m for all customers from 2025 as part of efforts to reform the power sector.
The subsidy, expected to last until 2027, aims to bridge the gap between cost-reflective tariffs and regulated electricity rates, while the government works towards eliminating the metering deficit and enhancing the financial sustainability of power distribution companies.
According to Nigeria’s Energy Compact document obtained by Sunday PUNCH, the initiative is part of the National Energy Compact and aligns with Nigeria’s broader electrification and clean energy transition plans.
Nigeria, alongside Côte d’Ivoire, Zambia, and nine other African countries, presented its energy compact at a two-day summit in Tanzania, with a focused on innovative energy solutions.
However, the policy is a temporary measure designed to ensure affordability while the government progressively moves towards full cost-reflective tariffs.
The document noted that the subsidy might take different forms, including a flat monthly subsidy per electricity consumer or a subsidy on the first 50 kilowatt-hours consumed each month.
This approach intends to reduce the regressivity of previous subsidies, where a significant portion benefited wealthier households.
By 2027, the government plans to introduce a social tariff to protect low-income and vulnerable customers once the broader cost-reflective framework is fully implemented.
The document noted the Federal Government’s trajectory to full cost-reflectivity included a “$600m per year subsidy in 2025 to 2027 (while metering gap is being closed), and then fully CRT except for social tariff for vulnerable customers.”
It added, “In order to decrease the regressivity of electricity subsidies, move towards a full cost reflective tariff system which includes a limited and uniform subsidy for all customers in 2025 while the metering gap is being closed. This scheme can take the form of a uniform monthly subsidy per customer, or the first 50 kWh per month being subsidised.”
A key focus of the reform is closing Nigeria’s metering gap, which currently stands at approximately seven million unmetered electricity end-users.
The government outlined a plan to install 1.5 million smart meters in 2025, four million in 2026, and 1.5 million in 2027.
The closure of the metering gap is expected to minimise losses in the sector, improve revenue collection efficiency, and ensure that tariffs are aligned with actual consumption, thereby reducing the need for future subsidies.
The electricity sector has struggled with financial sustainability due to high technical and commercial losses, low tariff recovery rates, and liquidity constraints.
Despite efforts under the Power Sector Recovery Programme, tariff shortfalls reached N650bn in 2023 and are expected to rise further in 2024, potentially exceeding N2.2tn.
The subsidy scheme would provide temporary relief while ensuring that distribution companies meet their financial obligations to power generation companies and the Transmission Company of Nigeria.
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Ooni debunks report over conferment of chieftaincy title on Baba Ijesha
The Permanent Chairman of the Southern Nigerian Traditional Rulers Council (SNTRC), Arole Oodua Olofin Adimula and the Natural Head of the Oduduwa race worldwide, the Ooni of Ife, Ooni Adeyeye Enitan Ogunwusi, Ojaja II, has rubbished reports circulating on social media alleging that he conferred a chieftaincy title on popular Nollywood actor and comedian, James Olanrewaju, popularly known as Baba Ijesha.
In a statement on Saturday by the Director of Media and Public Affairs, Ooni’s Palace, Otunba Moses Olafare said the Ooni clarified that although he warmly received the actor and his wife at the Ile Oodua Palace on Wednesday to celebrate the birth of his son and presented him with a brand-new car and cash gifts as a demonstration of his fatherly love and royal generosity, no chieftaincy title was conferred on him.
According to him, the expression “Awada Konge Oduwa,” which Baba Ijesha later described on his social media pages as a chieftaincy title, was merely a light-comedy remark made by the Ooni during a relaxed interaction in recognition of the actor’s outstanding career as a comedian.
The remark was never intended to constitute a formal installation or conferment of a traditional title.
The Ooni noted that Baba Ijesha, as an indigene of Ile-Ife and a proud son of the source, is deserving of honour and could be considered for a chieftaincy title in the future.
However, no such title has been conferred on him.
“The conferment of chieftaincy titles in Ile-Ife remains a sacred traditional process governed by established customs, consultations and traditional rites, which are publicly conducted in accordance with the age-long traditions of the source. None of these customary procedures took place during the actor’s visit to the Palace, “he said.
While appreciating Baba Ijesha for acknowledging the royal kindness extended to him and his family, the Ooni urged media organisations and members of the public to disregard reports claiming that the actor has been installed as the “Awada Konge Oduwa” or conferred with any chieftaincy title.
The Ooni reaffirmed his commitment to celebrating and supporting deserving sons and daughters of Ile-Ife and the Oodua race at large while preserving the sanctity, dignity and integrity of the revered traditional institution of chieftaincy.
News
Presidency Orders DSS, EFCC To Probe Govt Officials Linked To PFIPC Scandal
The Presidency has called on security and anti-graft agencies to identify, arrest and prosecute government officials who may have collaborated with Prince Matthew Adeniyi Adeyemi in the alleged operation of two fictitious federal government agencies.
Adeyemi is accused of creating the Presidential Foreign Intervention Promotion Council and the Presidential Economic Advisory Council using allegedly forged documents purportedly linked to the Presidency.
In a statement on his verified X handle, the Senior Special Assistant to President Bola Ahmed Tinubu on Media and Publicity, Temitope Ajayi, said investigators must go beyond Adeyemi and expose the internal network that allegedly enabled him to operate for an extended period.
Ajayi urged the Department of State Services (DSS), the Nigeria Police Force (NPF) and the Economic and Financial Crimes Commission (EFCC) to investigate all officials within public institutions who may have aided the alleged scheme.
According to Ajayi, much of the public debate has ignored the fact that government institutions detected the alleged fraud and acted on it.
He said officials of the Nigerian Investment Promotion Commission, working with officers of the Ministry of Foreign Affairs, first discovered inconsistencies in Adeyemi’s operations and reported the matter to the appropriate authorities.
“Contrary to the anything-goes narrative being promoted, it was the system itself that raised the red flag and dealt with it administratively,” Ajayi said.
He, however, acknowledged that the suspect could not have operated for long without help from insiders.
“What is not in doubt is that internal collaborators enabled Adeyemi to get this far. That is precisely what investigators from the DSS, the Police and the EFCC must now unravel.
“The criminal network within the affected institutions must be dismantled and everyone found to have played a role should be arrested and prosecuted,” he said.
The Presidency had earlier disowned the disowned the two organisations, insisting that they did not exist as government agencies.
It also maintained that the Chief of Staff to the President, Femi Gbajabiamila, neither authorised Adeyemi’s activities nor had any connection with them.
“In Nigeria, the easiest and most believable allegation anyone can throw at a public officer is corruption.
“Once that accusation is thrown into the mix, the water is polluted, the lines are blurred and everyone is kept busy arguing over distractions rather than the real issues,” he wrote.
He described Adeyemi as “an irredeemable con artist” who was using allegations against the Chief of Staff as “his last straw” to avoid criminal liability.
The Presidency insisted that the case should not be framed as evidence of complicity at the highest levels of government, but as an alleged fraud uncovered by the system itself.
News
TCN announces planned outage at Abuja transmission substation
Transmission Company of Nigeria, TCN, Abuja Region has announced a planned preventive maintenance at the Katampe 132/33 KiloVolt (kV) Transmission Substation on Saturday from 9:00am to 4:00pm.
General Manager, Public Affairs of the TCN, Mrs Ndidi Mbah, made this announcement in a statement in Abuja on Saturday.
Mbah said the scheduled maintenance is to enable TCN’s maintenance crew carry out preventive maintenance on the 100 Mega Volt Ampere (MVA) 132/33kV Power Transformer (TR1), its auxiliaries, and associated switchgear in the substation.
”Consequently, Abuja Electricity Distribution Company, AEDC, will be unable to off-take bulk power for distribution to customers in parts of Mpape, Maitama, Jahi, Life Camp,
”Others are Kado Fish Market, Idu-Karmo, and their environs during the maintenance period,” she said.
According to her, the company regrets any inconvenience the planned outage may cause electricity customers in the affected areas.
She added that equipment maintenance is essential to ensure their continued optimal performance.
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