25 March 2015, Abuja – Despite the criticisms that have greeted the recent slash of electricity tariffs, the Federal Government says the cut is aimed at improving the welfare of Nigerians.
According to the government, the reduction in tariffs will not lead to poor electricity supply, but will rather reduce the cost burden on the consumers and make the power firms to look inwards and come up with better ways of reducing their losses.
The Minister of State for Power, Mr. Mohammed Wakil, stated that the tariff cut showed that the government was interested in ameliorating the plights of the citizens.
Wakil spoke during the third graduation ceremony of engineers trained by the National Power Training Institute of Nigeria under its Graduate Skills Development Programme in Abuja on Tuesday.
“The recently announced 50 per cent tariff cut is a clear evidence that this government has the interest and welfare of its citizens at heart. The transformation agenda will not only bring about improvement in power supply, but also in the personal lives of the citizens of this country,” the minister said.
The PUNCH had on Monday quoted experts as describing the 50 per cent reduction in tariff by the Nigerian Electricity Regulatory Commission as a politically wise but business foolish decision.
According to them, the decision will result in tough financial times for the power generation and distribution companies as most of the firms are cash-strapped.
A renowned economist and Chief Executive, Financial Derivatives Company, Mr. Bismarck Rewane, had stated that the move “could prove to be politically wise but business foolish.”