New Telegraph

Electricity subsidy: More CBN action needed to reduce tariff burden on Nigerians –Experts

Following the Federal Government’s resolve to remove subsidy in the electricity sector projected at N1 trillion, experts have urged the Central Bank of Nigeria (CBN) to review its interventions in a manner that would ease further burden on the masses and also halt arbitrary billing of consumers

 

Before now, the CBN had introduced several interventions to prevent liquidity crisis and keep the sector afloat.

These include Power and Aviation Intervention Fund (PAIF), hovering at about N300 billion; Nigerian Electricity Market StabilisationFacility(NEMSF) at about N213 billion; the N140 billion Solar Connection Intervention Facility; the over N600 billion tariff shortfall intervention as well as the recent N120 billion intervention designed for mass metering.

 

Former President and Chairman of Council of Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, observed that the argument about removal of electricity subsidy, if any, was not the most fundamental to Nigeria at the moment.

He saidgovernmentwouldhaveto consider protecting the welfare of the people by underwriting some of their basic household and infrastructure needs.

According to him, the initiatives put in place by the apex bank may help the sector resolve the liquidity requirements to some extent, but the end must be allowed to justify the means of assurance of supply of electricity requirements in exchange for such support by the CBN.

He said: “Rather, the inability to supply the electricity needs of Nigerians, in the right quality and quantities

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