PwC reports Nigeria’s subsidy in electricity, petrol
By This Day
PwC Nigeria in a webinar conducted, reports that the country spent about N3.9 trillion to subsidise electricity and petrol consumption between 2015 and 2019.
The webinar conducted on the potential impacts of the Covid-19 on Nigeria’s power sector, explained that between the aforementioned years, the country’s expenses on petrol subsidy amounted to N2.3 trillion while that of electricity was N1.63 trillion.
Webinar presentation was made by the Director of Management Consulting PwC West Africa, Bimbola Banjo, who said that in the power sector alone, the federal government approved a loan of N213 billion for power Discos in 2014 as part of the Nigeria Electricity Market Stabilisation Facility (NEMSF) by the central Bank of Nigeria (CBN.
He said that in March 2017, the Federal Executive Council (FEC) equally approved N701 billion CBN facility as Power Assurance Guarantee for the Nigerian Bulk Electricity Trading Plc NBET for a period of two years.
In August, 2019, the government again signed the release of N600 billion for the power sector which source said was meant for the shortfall in the payment of monthly invoices by key stakeholders in the sector.
“The federal government has expended about N2.3 trillion as petroleum subsidy for the 4 years between 2015 – 2019.
The tariff shortfall in the electricity sector which in substance is an electricity subsidy payable by the federal government stood at N1.63 trillion between 2015 and 2019,” the PwC explained.
“Both subsidies alone amount to about N3.9 trillion which represents about 31 per cent of current foreign reserves and 37 per cent of the 2020 budget.”
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