Nigeria: 80% of Electricity Subsidy Benefits Wealthy Nigerians – World Bank

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The World Bank has disclosed that about 80 per cent of subsidy the federal government provides in the electricity sector benefits mostly the country’s wealthy citizens with only two per cent of such getting to the poorest population.

The bank also stated that since 2017, the government has borrowed about N1.3 trillion from the Central Bank of Nigeria (CBN) to sustain the subsidy payment in the form of covering tariff shortfalls.

It disclosed this in a program appraisal document on a proposed credit worth $750 million which it intends to extend to Nigeria under the Power Sector Recovery Programme (PSRP) jointly developed to revamp the country’s power sector.

The bank explained that the country cannot continue to fund electricity tariff shortfalls which is rising annually and would have to allow for a cost-reflective tariff in the sector.

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