The Nigerian Electricity Regulatory Commission (NERC) has confirmed the removal of electricity subsidies by the federal government.
Sanusi Garba, NERC chairman in his speech on Wednesday March 16, said the commission played a role in ensuring that tariff rates were regulated.
Garba who revealed that adjustment was made in February following underlying economic considerations, added that tariff adjustment was straightforward and distribution companies are expected to inform their customers of the changes.
He said;
“Now subsidy is a policy issue determined by the government. The government will decide that the rates calculated or agreed by the regulator may at this time not be passed on to consumers. It has happened many times.
“In the past four, five years the level of subsidy has gradually been reduced, because you cannot run the electricity market on life support and say that investors cannot get their return on investment until government steps in to provide the required funding.
“Now subsidy is a policy issue determined by the government. The government will decide that the rates calculated or agreed by the regulator may at this time not be passed on to consumers. It has happened many times.
“In the past four, five years the level of subsidy has gradually been reduced, because you cannot run the electricity market on life support and say that investors cannot get their return on investment until government steps in to provide the required funding."
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