The Vice President of Nigeria, Yemi Osinbajo on Monday said payment of high electricity tariffs is inevitable for Nigerian electricity users.
Prof. Osinbajo said this while speaking at the Sixth Presidential Business Forum held at the old Banquet Hall of the Presidential Villa, Abuja.
The vice president’s media aide, Laolu Akande, quoted Mr. Osinbajo as saying that the government is, however, trying not to increase electricity tariff for now.
“Listening to questions concerning lower tariffs, we must pay higher tariffs, these sorts of things are inevitable,” Mr. Osinbajo said.
“What we are trying to do is not increase tariffs for now, but how we can ensure we clean up the entire value chain. I’m 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 chain.
“Today, 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 electricity. 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, Osinbajo explained that President Muhammadu Buhari has directed that a small committee to look at the issue of intervention funds in agriculture be set up, adding that government would ensure that the agricultural intervention funds go to the right people and also monitor the use of the funds.
