Nigerians To Pay More For Power As Tinubu Approves New Tarrif

Nigerians to pay more for electricity as Tinubu eliminates the N30 billion monthly subsidy for electricity.

Tinubu eliminated the N30 billion monthly subsidy for electricity and Nigerians will now pay more for energy.

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President Bola Ahmed Tinubu’s signature of the Electricity Act 2023, according to the Manufacturers Association of Nigeria (MAN), will, if properly implemented after the removal of fuel subsidies, provide relief for both its members and Nigerians.

In a statement dated Thursday and signed by Ms. Chisom Oguezuonu, Executive Officer, Corporate Service Division of MAN, Mr. Segun Ajayi-Kadir, Director General of MAN, confirmed this.

The electrical value chain in Nigeria has experienced varied upheavals over the years, according to Ajayi-Kadir.

He ascribed this to ineffective policy enforcement, excessive regulation, the unpredictability of the gas supply, and transmission network bottlenecks.

He claimed that the root of the issues According to him, the result of these issues was an unstable electrical supply, frequent power outages, and ongoing national grid breakdowns, which slowed the expansion of the economy.

He stated that the insufficient energy supply in Nigeria reduced the profitability of manufacturing, resulting in an annual economic loss of around N10.1 trillion, or 2% of the GDP of the nation.

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He claims that firms spent N144.47 billion in 2022 compared to N77.21 billion in 2021 on alternative energy.

But he added that the recently passed Electricity Act 2023 might cause a sharp drop in the price of alternative energy and address a number of industry-wide issues.