on Monday, were thrown off balance as Vice President, Yemi Osinbajo,
announced the Federal Government’s immediate plan to increase
electricity tariff nationwide.
This announcement came at a time when most parts of the country are groping in darkness and erratic power supply.
dropped this major bombshell while speaking at the 6th Presidential
Business Quarterly Forum for Private Sector, at the Presidential Villa,
words: “Listening to questions concerning lower tariffs, we must pay
higher tariffs; these sorts of things are inevitable. What we are trying
to do is not increase electricity tariffs for now, but how we can
ensure we clean up the entire value chain. I am sure you are aware of
the Payment Assurance Guarantee, which we put in place for over N700
billion to ensure gas is paid for, and for liquidity in the whole value
we will be meeting with the World Bank on a scheme they have been
working with us on to fund the entire value chain, and ensure we transit
smoothly from where we are, to a much more market-determined policy for
“This will involve a fair amount of subsidy, and help the Federal Government and World Bank are working together on that.
“There is no way of sustaining the current subsidies long term, but we want to ensure the process is smooth.”
also noted that the nation was at a special moment in its journey to
food security, saying: “We are in a special moment, because the Federal
Government has shown commitment towards agriculture and entire value
chain. We have seen the enthusiasm of all the players, including the
small Farmers all across the country.
feedback concerning issues that have been raised, there is cheaper
credit, and the President directed that we set up a small Committee, to
look at the issue of intervention funds in agriculture.
is clear that we are not able to bring down interest rates overnight,
the way out is by some kind of intervention agreement.”