The federal government has disclosed that there will be no reduction in 45 percent increase in electricity tariff, as the reversal will cost over N575 billion. Babatunde Fashola, minister of power, works and housing, made the statement on Tuesday when he appeared before the senate committees on labour and power.
“One of the reasons why the tariff had to go up was that a major component, a significant number of our power plant depends on gas and out of about 26 power plants that we have only about three are hydro,” he said.
“We were heavily dependent on gas, people were exporting gas because gas was selling outside the country at four dollars and it was selling for domestic use at one dollar.”
Fashola added that since 2005 when the power privatisation process started, till 2013 when it was concluded, every segment of government was involved and would share the blame if there was any failure.
“Enabling laws for the process were passed by the aational assembly in 2005 , the process completed by the executive in 2013: if the process was bad, where was oversight?’” he asked.
He pleaded with the lawmakers and Nigerians to be more patient with government and investors, saying three years was not enough to judge the success or failure of the sector.