The President , Major General Muhammadu Buhari (retd . ), says it will be “ grossly irresponsible ” to borrow to subsidise electricity tariff amid the economic crunch caused by the lockdown occasioned by the COVID – 19 pandemic .
He also said no provision was made for fuel subsidy in the Revised 2020 Budget, noting that about N1 .7 trn has been spent on tariff shortfalls to support the electricity sector since its privatisation .
The President , who spoke on Monday during his second – term First Year Ministerial Performance Review Retreat in Abuja , noted that under the new arrangement , only customers who get electricity for 12 hours and above per day would have their tariff increased .
the President said the government revenue had shrunk by 60 per cent due to the COVID – 19 pandemic but the government was not considering borrowing to fund subsidy for electricity and petrol .
He said , “ The COVID – 19 has led to a severe downturn in the funds available to finance our budget and has severely hampered our capacity . One of the steps we took at the beginning of the crisis in March when oil prices collapsed at the height of the global lockdown was the deregulation of the price of premium motor spirit such that the benefit of the lower prices at the time was passed on to consumers .