By Paul Effiong, Abuja
House of Representatives Committee on Finance has directed the federal government to halt the payment of N705 billion as subsidy for electricity tariff under the Power Reform Programme.
Chairman of the committee, James Falake gave the directive yesterday when Nigerian Bulk Electricity Trading, NBET, among other agencies, appeared before the committee to defend their 2025 budget proposal at the National Assembly Complex, Abuja
The committee also queried the Acting Managing Director of NBET, Johnson Akinnawo, on why the federal government should keep paying for subsidy from taxpayers’ money and yet tariffs are still high.
“The committee is going to hang this figure” the chairman emphasized, adding that there is the need to hold sessions with the Nigerian Electricity Regulatory Commission, NERC, and NBET.
In his reaction, the NBET boss revealed that in 2024, N450 billion was fully released to meet the obligations of power reform programme in Nigeria, but lamented that funding by the regulating commission is currently at 95 percent.
He also informed that in the 2025 budget proposal, N705 billion has been earmarked for the power reform programme, while the regulatory income is N7.1billon subject to upward review.
In her presentation, the Minister of State for Finance, Doris Uzoka-Anite reported a 100 percent performance in personnel and overhead costs for 2024, but only 22 percent in capital expenditure. For 2025, the ministry proposed a total budget of N13.511 trillion.
She informed that “in 2024, we had N2,413,790,305. Overhead, we have N1,809,809,393. The total budget for 2024 for the Federal Ministry of Finance was N8,106,450,530. Our performance based on 2024 was 100 percent, overhead 100 percent and capital 22 percent.
“The total budget N2,495,300,769 (personnel), N3,565,556,897 (Overhead) and N7,450,800,902 for capital for 2025. That brings the total to N13,511,607,568.
“This includes the issue of exchange rate depression.
“Our offices look good from the outside but inside needs a lot of rehabilitation. We wish that you can improve our capital allocation, as well as the overhead.
“The minister gave a figure of N38 billion as the total for 2025 and on behalf of the Coordinating Minister and the Minister of State, I would also like to plead with you, just as we call the support of the Senate Committee on Finance, help us to improve our envelope for 2025.”
Chairman of the Fiscal Responsibility Commission, Victor Muruakor appealed for increased funding, citing insufficient allocation for personnel and capital projects.
The commission reported a 38.18 percent capital release for 2024 and sought improved funding for 2025.
“In 2025, we have a total sum of N255,753,579 as our overhead with N515,152,803 as our capital cost. Bringing a total cost of N1,415,357,014,” he said.
