NDPHC Boss Urges FG to Remove Electricity Subsidies for All Customers

The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), has called on the Federal Government to completely remove electricity subsidies for all customer categories across the nation.

The chief executive advocated for the implementation of cost-reflective tariffs as a necessary measure to ensure financial stability within the power sector and attract much-needed investment.

Electricity subsidies have long been a contentious issue in Nigeria's power sector, with the government spending billions of naira annually to keep tariffs below the actual cost of generation and distribution. However, industry experts argue that these subsidies have failed to deliver reliable power supply to Nigerians.

The call for subsidy removal aligns with ongoing reforms in the electricity sector aimed at creating a sustainable and commercially viable industry. Proponents of this policy argue that cost-reflective pricing would encourage private sector investment and improve service delivery.

However, such a move would likely face resistance from consumers already grappling with economic challenges, as the removal of subsidies would result in higher electricity bills for households and businesses alike.

The Federal Government now faces the delicate task of balancing the need for sectoral financial sustainability with the economic realities facing ordinary Nigerians, as it considers the NDPHC chief's recommendation.