President Muhammadu Buhari has hinted of another tariff hike amid unresolved lingering disagreements with labour unions on the previous increment.
At the unveiling of Eko Electricity Distribution Company’s Supervisory Control and Data Acquisition-Distribution Management System Centre in Lagos, the president said the tariff shortfall in the power sector being borne by the federal government was no longer sustainable.
The Supervisory Control and Data Acquisition Supervisory Management System, is a system to ensure that faults in the electricity distribution chain are spotted and quickly resolved.
At the unveiling of the system, the president, who was represented by Minister of Power, Sale Mamman, said the electricity tariff shortfall which the federal government bears was not sustainable.
“We have noted with grave concern the increased fiscal burden on the Federal Government occasioned by the tariff shortfalls in the sector which are no longer sustainable. We are also aware that these tariff shortfalls sit on Discos’ books and impair their ability to raise capital and invest.
“The Federal Government is working assiduously to address these financial and fiscal challenges through various programmes such as the National Mass Metering Programme, the Siemens AG Power Project and the World Bank Distribution Sector Recovery Programme, etc.”