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.

Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has expressed concern over the contradictory stance of many Nigerians regarding corruption.

He pointed out that while citizens frequently condemn corruption, they often rally behind corrupt leaders when they face prosecution.

Olukoyede made these remarks on Friday in Abuja during a visit by officials of the Centre for Crisis Communication (CCC), led by its Board of Trustees director, Chris Olukolade.

The EFCC chairman emphasized that corruption and financial crimes are among the biggest challenges hindering Nigeria’s progress. He asserted that tackling these issues requires collective responsibility, not just government intervention.

“One of the major problems in Nigeria, which, when tackled, will make underdevelopment a thing of the past, is corruption and financial crimes,” Olukoyede stated.

He stressed that national progress depends on both leadership and citizen action, urging Nigerians to actively uphold integrity in their daily dealings.

“A society that is ready to move forward is a responsibility not only of the government but of the citizens. This is why some of us are deeply committed to this cause. We are prepared to do what is necessary within the confines of the law and the powers granted to us by the Constitution. If everyone decides to do the right thing, Nigeria will move forward,” he added.

Olukoyede reiterated the EFCC’s unwavering commitment to fighting corruption, assuring the public that the agency will operate strictly within legal boundaries while ensuring justice is served.

Highlighting the importance of public cooperation, Olukoyede emphasized the need for strategic communication and collaboration with organizations like the CCC to enhance public awareness. He lamented the inconsistency in public reactions to corruption cases, noting that the same individuals who criticize corruption often defend high-profile figures facing corruption charges.

“It is unfortunate that people condemn corruption yet, at the same time, support those accused of it,” he said.

He criticized the public tendency to stage protests in support of politicians and business figures facing corruption trials, arguing that such actions undermine the fight against financial crimes.

“Everybody complains that corruption is ruining our system, yet when we investigate and prosecute high-profile cases, the same people take to the streets with placards in support of corrupt leaders. This attitude suggests that we are not serious about fighting corruption. The fight must be a collaborative effort,” he remarked.

Olukoyede urged Nigerians to remain consistent in their stance against corruption, emphasizing that meaningful progress can only be achieved when citizens and authorities work together in the pursuit of accountability and justice.

Piqued by the tanker explosion which claimed many lives at the Ugwu Onyeama axis of Enugu/Onitsha Expressway, the Federal Ministry of Works is to demand that MTN commits irrevocably to pay contractors on the project a minimum of N15 billion every month for the next 10 months towards fast tracking the completion of the road.

Failing to abide with the arrangement, the Ministry might consider initiating termination process of the project.

This was part of resolutions reached during a courtesy call on Minister of Works, Senator David Umahi, by a delegation from the Anambra and Enugu caucus of the 10th National Assembly who came to seek the Federal Government’s intervention on the completion of the construction of Enugu/ Onitsha Expressway, being handled by RCC Ltd and funded by MTN under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

According to a statement issued on Saturday Uchenna Orji, media aide to the minister, it was further resolved that MTN would need three contractors to do the 79 kilometers within the original contract sum of N202 billion.

It was also resolved that the remaining 72km of the road shall be awarded to other contractors, and that MTN and RCC would be invited to bid too.

The minister assured the people of the South-East of the commitment of the administration of President Bola Tinubu to the transformation of the transportation infrastructure in the zone, like every other geo-political zones of the country.

The minister who expressed deep sympathy over the lives that have been lost along the uncompleted sections of Enugu/Onitsha Expressway especially the recent incident of tanker explosion, stated that the people of South-East have every reason to have implicit confidence in Tinubu’s ability to address the road infrastructure challenges in the zone.

He noted that under Tinubu, the South-East has been given a pride of place in the political landscape of Nigeria.

“Again, we should also be grateful to Mr. President. Since he became President, we’ve not heard about farmers and herders clashes in the South East. Mr. President inherited 2,064 projects, totaling about N13 trillion, and today, those projects will be over N20 trillion, by reason of the floating of the Naira and the removal of fuel subsidy.

“It’s nobody’s fault. But by his good heart and commitment to rewriting the story of this country, he will make Nigeria great again.”

Speaking during the event, the leader of the delegation and Minority Whip of the Senate, Senator Osita Ngwu commended the minister for the unprecedented scale of road construction, rehabilitation and maintenance nationwide.

However, he expressed concern that some of the projects were not receiving adequate funding required to complete them in record time.

Ngwu made particular reference to the Enugu/Onitsha Expressway that was awarded to RCC and funded through the tax credit scheme, noting that some sections of the road have become death trap to road users.

He stated that the delegation was compelled by the recent tanker mishap on the Ugwu Onyeama axis of the road in Enugu State to visit the minister.

The senator expressed the readiness of lawmakers to offer necessary cooperation that would help in tackling the challenges and bottlenecks faced by the Ministry in ensuring the completion of the road.

“We appreciate that since the minister assumed office that the President has graciously approved quite a number of projects in the South-East. We appreciate Mr. President, but we are worried that it is not just about putting projects across our zone, but when these projects are not funded, it looks like it is just a game.

“We are worried that some of the projects that are in the South-East are not receiving funds that can make it to progress so that we can have benefits for such projects. And when it is not funded, it becomes a worry to us.”