The federal government had earlier announced removing the electricity subsidy, which Nigerians widely criticised.
The Minister of Power, Adebayo Adelabu, warned that the nation could face a complete power outage within three months if the planned increase in electricity tariffs is not implemented.
Adelabu made this declaration during his appearance before the Senate Committee on Power in Abuja.
The committee, led by Senator Enyinnaya Abaribe, held an investigative hearing regarding the recent tariff hike proposed by the Nigerian Electricity Regulatory Commission (NERC).
In a decision that directly affects the public, the Senate committee decisively rejected the proposed hike, thereby demonstrating their unwavering commitment to the welfare of the Nigerian people.
As quoted by Daily Trust, Adelabu said,“The entire sector will be grounded if we don’t increase the tariff. With what we have now, the entire country will be in darkness in the next three months if we don’t increase tariffs.
“So, for us to attract investors and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing.
“If the value is still at N66 and the government is not paying subsidy, the investors will not come. But now that we have increased the tariff for A Band, there are interests being shown by investors.”
Adelabu explained that the government’s inability to settle the outstanding ₦2.9 trillion subsidy was due to limited finances, emphasising the necessity of implementing strategies to sustain the energy sector.
He urged lawmakers to support the repayment of debts owed to operators throughout the generation, transmission, and distribution sectors.
Senate committee tackles minister
However, the Senate Committee on Power, headed by Senator Enyinnaya Abaribe, expressed concerns about the hardships faced by Nigerians and encouraged the minister and other stakeholders to explore alternative solutions.
Senators Simon Lalong and Adamu Aliero highlighted the lack of consultation prior to the tariff increase and emphasised the importance of providing relief measures during such processes.
Abaribe, Chairman of the Committee, said, “What Nigerians wanted was a solution to the issues and ways to ensure liquidity in the sector.”
He also criticised the absence of the company “ZIGLAKS” regarding the unsuccessful deal to supply prepaid meters to Nigerians, claiming that the company had received N32 billion over two decades to meter Nigerian electricity consumers.
Participants at the investigative hearing included the Nigerian Electricity Regulatory Commission (NERC), Manufacturers Association of Nigeria (MAN), Association of Power Generation Companies (Gencos), Electricity Distribution Companies (DisCos), and others who made presentations.
