Energy: FG to direct N1 trillion electricity subsidy savings to social services

The Federal Government plans to use the approximately N1 trillion in savings from the elimination of electricity subsidies for national power supply upgrades and social programs.

 Speaking at a radio program in Kaduna, Minister of Information Mohammed Idris stated that the Nigerian Electricity Regulatory Commission (NERC) has the authority to penalize power distribution companies (Discos) that do not fulfill their contractual obligations under the recently signed electricity act by President Tinubu.

He said, “It is essential to emphasize that the funds to be saved from the withdrawal of electricity subsidy will be reinvested in enhancing power supply across the country and improving other vital social services such as health and education.”

The Minister also stated that the post-fuel subsidy intervention of the Federal Government such as the cash transfer program to vulnerable Nigerians and the provision of CNG buses are still on track.

For the N25,000 cash transfer program, the Minister noted that the presidential committee set up to review its operational mechanism has submitted its report, noting that it would commence soon.