President BOLA TINUBU has decided to halt the implementation of a proposed hike in the electricity tariff, opting instead to continue subsidising power consumption nationwide.

The Minister of Power, ADEBAYO ADELABU, made the announcement in Abuja.

ADELABU said that while a cost-reflective tariff was necessary to ensure the financial stability of the power sector, it would place an undue burden on Nigerians, who are already dealing with rising fuel costs and inflation.

He stated that the delay in implementing the tariff was causing liquidity issues within the sector but noted that the president’s priority was to alleviate the hardship faced by citizens.

According to ADELABU, Nigerians currently pay around N70 per kilowatt-hour, but a cost-reflective tariff would necessitate an increase to N130 or N140 due to the rising cost of gas, which is paid for in dollars.

The minister added that the government’s decision to continue subsidising power consumption is straining the electricity sector’s liquidity and hindering investments.

He, however, noted that President TINUBU had refused to allow a raise in the electricity rate to protect Nigerians from further financial burdens.