The federal government has said it is planning a gradually move towards a cost-reflective electricity tariff in the country.
Minister of power, Adebayo Adelabu, disclosed this on Monday.
A statement by Bolaji Tunji, special adviser on strategic communication and media relations to the minister, quoted him to have said the industry would gradually move towards fairer pricing.
“There would not be a gradual removal of subsidy but a gradual migration to a cost reflective tariff that will last till the next three years,” the minister said.
There have been calls from different quarters for the federal government to discontinue payment of electricity subsidy.
In February, Adelabu who decried the debt owed gas companies by the federal government said it was unrealistic for government to continue to subsidise electricity.
Also on February, the International Monetary Fund (IMF), asked the government to discontinue the payment.
However, the Senate urged the government to jettison the plan to discontinue the payment and also passed a resolution to prove the debt owed by the government, as claimed by the minister.
