President Muhammadu Buhari disclosed on Monday that the Federal Government has spent about N1.7 trillion to supplement electricity tariff shortfalls in order to keep the power sector afloat.
The Nigerian president expressed displeasure that a sector that has been mostly privatised was still enjoying subsidy from the Federal Government.
The industry support figure was contained in the President’s address at the first year ministerial performance review retreat held at the State House Conference Centre, Abuja.
The President explained that the problems associated with the power sector privatisation exercise informed the decision of government to keep supporting the largely privatised electricity industry.
‘’We do not have the resources at this point to continue in this way and it will be grossly irresponsible to borrow to subsidise a generation and distribution which are both privatised,’ the President stated.
‘But we also have a duty to ensure that the large majority of those who cannot afford to pay cost reflective tariffs are protected from increases.’