Sale Mamman Minister of Power, in an investigative public hearing has hinted on the proposed electricity tariff increase by the Federal government and said will kick off in July that the subsidy incurred in order to maintain the current tariff level is unsustainable.

Further, the minister in the hearing on the power sector recovery plan and the impact on COVID-19 pandemic at the Senate on Tuesday, June 16, said  “The impact of the COVID-19 pandemic has also affected our laid-out plan for the repositioning of the electricity market towards financial sustainability under the power sector recovery programme (PSRP).

Initially, the regulator, following the completion of public consultation on tariff review, planned on conducting a tariff review in April 2020. However, due to COVID-19 and customer apathy, the proposed tariff review was delayed by three months.

The impact of this means the subsidy being incurred in maintaining the current tariff level had to be maintained until July 2020 when the proposed tariff review will be implemented. The current situation in the Nigerian power sector is that a lot of capital investment is being made, most of which is dependent on donor funding, loans and budgetary allocation.