The Federal Government will end most of its subsidy payments in the electricity sector estimated at N30 billion monthly in 2022, Vice President Yemi Osinbajo, has said.
The Vice President said this on Monday at the opening of the 14th Nigerian Association for Energy Economics (NAEE)/IAEE conference in Abuja.
He said that government would be investing over $3 billion in the coming years to improve transmission and distribution infrastructure across the country.
Represented by the Special Assistant to the President on Infrastructure, Engr. Ahmad Zakari, Osinbajo said the government expected the electricity sector to generate its revenue from the power sector market.
“Electricity tariff reforms with service-based tariff has led to collections from the electricity sector by 63 per cent, increasing revenue assurance for gas producers and stabilizing the value chain,” the Vice President said.
“It is anticipated that all electricity market revenues will be obtained from the market with limited subsidy from next year as reforms in metering and efficiency with the DISCOs continue to improve,” he said.
Osinbajo charged the participants to come up with solutions to key energy challenges facing the country, especially with the COVID-19 pandemic and energy transition.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, said the COVID-19 pandemic had grave impact on the energy sector.
The President of NAEE, Prof. Yinka Omorogbe, warned that energy transition and movement towards net zero carbon was real, stressing that Nigeria must take steps to align itself with global trend.
