The Federal Government has reiterated its commitment to transition to cost-reflective tariffs and phase out electricity subsidies across the power sector.
Special Adviser to the President on Power Infrastructure, Sadiq Wanka, disclosed this in Lagos on Wednesday at Asharami Square 3.0, a Sahara Group initiative promoting sustainability through effective media advocacy, themed “Energising Africa’s Future: Legacy, Impact, and Transformation.”
Wanka described cost-reflective tariffs as one of the most difficult conversations in Nigeria’s electricity market but said the government remained committed to implementing the policy.
He assured that poor and vulnerable Nigerians will be protected through targeted support as part of the reforms.
“There’s a conversation also around cost-reflective tariffs. Again, probably the most frustrating topic when you talk to investors and when you talk to market participants. But I think, for me, I see it as a journey, and it’s a journey that was started. It started with the move for Band A to cost-reflectivity.
“And it’s been difficult to move the rest of the sector to cost-reflective tariffs without necessarily ensuring that we have all the backstops for some of the vulnerable households. But that is official government policy now; it would happen. So, it’s just a question of timing.
“It’s official government policy that there would be a transition to cost-reflective tariffs across the board with protections for vulnerable households. So, I believe that’s something that should happen probably in the next year or so,” he said.
Wanka said the proposed Power Consumer Assistance Fund, is one of the immediate priorities for the electricity market.
