Tag: SUBSIDY

FG to launch electricity subsidy for poor Nigerians

Aminu Imam
FG on electricity subsidy

The Federal Government has stated that a targeted electricity subsidy is being developed to protect vulnerable households while ensuring the long-term commercial viability of the industry. Minister of Works, Adebayo Adelabu,  who made the disclosure at the Nigeria Energy Forum in Lagos, stated that the Government will also introduce a minimum capital adequacy requirement for distribution companies (DisCos) during their license renewal process, to strengthen liquidity and improve service delivery. The Minister also disclosed that Nigeria has commenced export of locally produced solar panels to Ghana, signalling the country’s readiness…

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‘No subsidy in oil, gas sector’ — NMDPRA

Aminu Imam
NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA ), has said there are no subsidies in the oil and gas sector, as Nigeria operates a completely deregulated market. The NMDPRA Director, Public Affairs Department, George Ene-Italy, who made this known to newsmen in Abuja yesterday, was reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas, (CNG). Recall that CNG refilling stations in the Federal Capital Territory (FCT) had, early this week, increased the product from ₦230 to ₦380…

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Power: FG incurs ₦1,949bn gross tariff subsidy shortfall in 2024

Aminu Imam
FG incurs

The total gross electricity subsidy tariff shortfall incurred by the Federal Government to the power sector in 2024 amounted to ₦1,949 billion. According to data sourced from the Nigerian Electricity Regulatory Commission, (NERC)’s newly-released 2024 Annual Report, the debt was incurred as a result of a lower-than-cost-reflective tariff as computed for the year under review. As a result, NERC said the government undertook to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff shortfall funding, which amounted to a total of ₦1,949.17 billion in…

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Electricity: Tariff hike looms, as power subsidy hits N181bn

Aminu Imam
Edited in Prisma app with Oleander

Electricity customers on Band-A feeders may face a tariff increase as the Federal Government’s electricity subsidy rose to N181.63bn in September, up from N102.30bn in May. Recall that the Federal Government had removed subsidies for Band-A customers in April, raising tariffs to N225 per kilowatt-hour, prompting public outcry. Despite a temporary reduction in tariffs, the subsidy continued to rise, driven mainly by foreign exchange rates and inflation. The Nigerian Electricity Regulatory Commission (NERC) has indicated that further tariff adjustments may be needed unless power generation costs drop. According to data…

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Electricity: FG approves 50% subsidy for public hospitals

Aminu Imam
FG on hospitals

To rename Federal hospitals as ‘Specialists’ ones The Federal Government has approved a 50% electricity subsidy for public hospitals nationwide to reduce operational costs and ease patients’ financial burdens. Minister of State for Health and Social Welfare, Dr. Tunji Alausa, announced this during a visit to the National Neo-Psychiatric Hospital in Barnawa, Kaduna. Dr. Alausa, while commissioning several new projects at the hospital, including an Electronic Health Records system and a solarisation project, said, “This subsidy is part of our commitment to improving healthcare delivery across the country. It will…

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FG to assist 250,000 wheat farmers with subsidies- Agric. Minister, Kyari

Aminu Imam

The Federal Government has pledged to support about 250,000 wheat farmers with a 50 percent input subsidy to cultivate about 250,000 hectares during this years dry season. The Minister of Agriculture and Food Security, Senator Abubakar Kyari, disclosed this during the flag-off of the 2023/2024 dry session farming under the National Agricultural Growth Scheme and Agro-pocket Project at Kadume Village, Hadejia local government area, Jigawa State, yesterday. He said the FGs support for the wheat farmers is expected to produce over 1.2 million tonnes of wheat during the farming session.…

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Subsidy grounds small business owners’ operations

Abdul-Azeez Ahmed Kadir

Some small-scale business owners in the Federal Capital Territory (FCT), on Wednesday decried the low patronage of their businesses, saying the situation became pronounced since the removal of fuel subsidy by the Federal Government. May 29, President Bola Tinubu, at his inauguration speech, said that the Federal Government had removed the subsidy on fuel. Due to the removal, all facets of the economy witnessed a hike in prices of goods and services in the country. Mr Abdul Mohammed, a vulcaniser at Area 10, Garki, said since the removal of the…

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Subsidy Palliative: FG to pay N5, 000 to 10m households for 6 months – Minister

Aminu Imam

The Federal Government says it will pay N5, 000 to 10 million households for six months as palliative for removing petrol subsidy after June. The Minister of Finance, Budget, and National Planning, Zainab Ahmed, explained this at the Nigerian briefing on the sidelines of the World Bank/ International Monetary Fund, (IMF) spring meetings in Washington DC, USA, on Sunday. She restated that $800m has been negotiated and approved by the Federal Executive Council, and is now before the parliament for approval. The minister said the effort is led by the…

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Kenya to pay subsidy arrears amid tackling fuel shortages

Abdul-Azeez Ahmed Kadir

Kenya government officials on Monday said the government would pay subsidy arrears to petrol retailers this week as it seeks to allay fears of potential fuel shortages and forestall crisis. Kenya was reeling from a surge in crude oil prices since 2021 which have forced it to start subsiding retail prices like other frontier economies. The government of East Africas biggest economy rolled out a fuel subsidy in April 2021 to cushion consumers from the surge in the price of oil in international markets. It has so far spent 36…

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