Federal government has revealed that the amount spent on energy subsidies in Nigeria is presently over N30 billion each month.
The minister of power, Sale Mamman said the government was concerned about the constant complaints from ordinary Nigerians about the inevitable and periodic increases in the cost of power.
It revealed that the government’s electricity subsidy has been cut by N20 billion per month as a result of improved power tariff collection by distribution firms.
He said that the money was granted to help make up for the gap caused by power distribution firms’ inability to cover the cost of bulk electricity supplied by producing companies.
He went on to say that the subsidy dropped after a modest rise in the tariff system, but that it was still a significant drain on the country’s economy.