By Nneka Nwogwugwu
The Federal Government has said that government’s subsidy for electricity has been reduced by N20 billion per month.
The government stated this in a document on the progress and overview of Nigeria’s power sector.
According to the Punch which obtained the document from the Federal Ministry of Power in Abuja on Tuesday, said that the government revealed that its subsidy on electricity had dropped by N20bn monthly.
“Tariffs rose by 36 per cent from September 2020. Collections have grown by 60 per cent plus.
“Government subsidy has been reduced by N20bn per month. Record collections of N65bn hit in December 2020 cycle (from average of N39bn),” the document said.
In February this year, the Minister of Power, Sale Mamman, stated that the Federal Government was subsidising electricity supply across the country to the tune of over N50bn monthly.
Mamman had explained that the subsidy spending was because the government was worried by the incessant complaints by ordinary Nigerians over the unavoidable and periodic increase in the cost of electricity.