The Senate on Tuesday requested that the Federal Government finance power for Nigerians in an offer to lighten the proposed climb in power tax which had been conceded to one year from now.
Executive Senate Committee on Power, Sen. Gabriel Suswam decided while instructions newsmen in Abuja.
NAN reports that the authority of the National Assembly on Monday swam into the debate on the arranged climb in power levy from July 1.
The agents of the Distribution Companies (DISCOs) had kept up a similar ground that they would bolster the suspension of the arranged climb just if the legislature would bear the distinctions in the current duty and what was considered as the fitting tax.
Addressing newsmen, Suswam said “Nowhere in the world that power is not subsidised especially in developing economies because there are genuine people, who, because of their income, are unable to pay what is called a cost-reflective tariff.
“Nigerians are heavily burdened because of COVID-19. The economy has contracted by 3.2 per cent; that’s a lot.
“So it makes it difficult for you and me to attend to some of our social problems, would the government prefer to add burden or lessen it?
“The President has been doing well; he has spent so much money, and what we expect is that the spending will gradually reduce or diminish as the power sector becomes more efficient,” he said.
On the way forward, the chairman said that it was to make the power sector more efficient and for government to back out just like they had done in the oil sector where subsidy had been completely removed.
“Even at that, the government is reducing the pump price. So, should they, in the same vein, increase tariff? It doesn’t make sense,” Suswam said.
He expressed the hope that the executive would agree to subsidise electricity even though it was going to come at a cost.