FG Says It Cannot Sustain Electricity Tariff Shortfalls Nationwide

The Federal Government says it can no longer continue covering electricity tariff shortfalls while trying to provide reliable power across Nigeria. The Minister of Power said the electricity market is weighed down by poor revenue collection, inadequate metering, unpaid debts to generation companies and weaknesses in its market structure. He noted that suppliers must be able to collect payments if electricity pricing is to become commercially viable. The government is working with the Nigerian Electricity Regulatory Commission to review tariff assumptions and reform the market. The minister also questioned the continued use of the Nigerian Bulk Electricity Trading model, saying it has failed to achieve full cost recovery and should eventually be phased out.

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