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Senate rejects plan by FG to increase electricity tariff through subsidy removal

The Senate on Wednesday rejected the plan by the federal government to increase electricity tariff through the removal of electricity subsidy.

The upper chamber also resolved to conduct a proper investigation into the reasons behind the call for the removal of electricity subsidy.

The resolution was a sequel to a motion sponsored by Aminu Abass (PDP, Adamawa Central) during the plenary.

The Senate President, Godswill Akpabio, announced the resolution after a majority of the senators supported it through voice votes.

The Minister of Power, Bayo Adelabu, at a press briefing last week announced the federal government’s plan to remove subsidy on electricity supply.

The minister said Nigeria cannot continue to subsidise electricity because of the huge indebtedness in the power sector to the tune of N3 trillion.

But the lawmakers in their separate contributions rejected the plan on the grounds that it will increase the tariff.

Mr Abass, while presenting the motion, explained that the removal of the electricity subsidy will increase the electricity tariff and make payment of electricity bills unbearable for Nigerians.

The senator said there was already a high level of poverty in the country and the current economy is harsh on Nigerians, making living very expensive.

“In a country where greater number of the population live below the poverty level, with stagnant wages, rising inflation and depreciating currency, the prospect of higher electricity bill is unattainable” he said.

Mr Abass therefore prayed the Senate to advise the federal government to stand down the planned remival of subsidy to forestall increment in electricity tariff.

He also urged his colleagues to mandate the Senate Committee on Power to investigate the over N2 trillion subsidy requirements as stated by the Minister of Power.

The senator also called for a probe of the failed agreement to provide adequate prepaid meters to Nigerians.

Many of the lawmakers supported the rejection of the subsidy removal on electricity and the attendant increase in tariff.

The senator representing Sokoto South, Aminu Tambuwal, argued that it would be unfair for the government to increase electricity tariffs when Nigerians are going through hardships.

“The populace are facing untold hardships and the situation in the country is anything but normal and removal of any subsidy not to talk to electricity subsidy would be more than adding petrol to fire.

“When I heard the minister of power talking about removal, I don’t know why but I believe that it is insensitive,” Mr Tambuwal said.

Abba Moro, the senator for Benue South, also rejected the increase in the electricity tariff.

Mr Moro, a member of the Peoples Democratic Party (PDP), said the challenges of power supply in the country are very crucial and the negative aspects have forced many companies to fold up.

“In the 9th senate, an idea to increase the electricity tariff was raised and it was instantly killed because it was not in the interest of Nigerians

“Our concern at this moment should be how to generate electricity. Many organisations and companies are relocating from Nigeria simply because they do not have the energy to drive their production.

“This issue of subsidy removal has become a serious matter that we must be careful on how to handle it,” he said.

The senator representing Abia North, Orji Kalu, also supported the motion.

Mr Kalu, a former governor of Abi State and member of the All Progressives Congress (APC), urged the federal government to focus on the distribution and circulation of electricity supply and not increment.

“Why should people be paying for what they did not use? Our focus should be on transmission and distribution”, he said.

After the debate, the Senate also directed the Nigeria Electricity Regulations Commission (NERC) to ensure the implementation of energy caps by all DisCos to unmetered customers in the country;

It directed its Committee on Power to submit a comprehensive report for further legislative action.

Mr Akpabio subsequently directed the Clerk of the Senate, Chinedu Akubueze, to communicate the resolutions to appropriate authorities after the lawmakers voted in support of them.

Credit : Premium Times

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