Human rights activist and Senior Advocate of Nigeria (SAN) Femi Falana has raised concerns about the transparency of the Federal Government’s power subsidy scheme.
Falana’s doubts stemmed from conflicting official statements regarding the elimination of power subsidies and its implications for Nigerians.
Speaking on Channels TV, Falana referenced various pronouncements that appeared contradictory. He pointed out that in March 2021, Special Adviser to then-President Muhammadu Buhari on Infrastructure, Ahmad Zakari, announced plans to phase out electricity subsidies by the year’s end. Zakari suggested that increasing power generation could halve tariffs, eliminating the need for subsidies.
This stance seemed supported in 2022 by former Minister of Finance, Budget, and National Planning, Zainab Ahmed, who stated during a virtual meeting with African Finance Ministers and the IMF that electricity subsidies had been gradually phased out.
However, the narrative shifted when current Minister of Power, Adebayo Adelabu, revealed in January 2024 that the government was still subsidizing energy at a cost exceeding N3 trillion. This substantial financial burden, according to Adelabu, justified the significant rate hike for urban consumers, known as ‘Band A’ consumers, implemented on April 1, 2024.
Falana questioned discrepancies between the government’s declarations and the IMF’s claims, suggesting possible data manipulation.
He highlighted the disparity between the IMF’s estimation of N2.33 trillion for fuel and electricity subsidies in 2024 and the Federal Government’s figure of N3 trillion, calling for clarification.
Falana stressed the urgent need for the Federal Government to provide transparency and accountability regarding electricity subsidies. He advocated for the establishment of an inquiry panel to investigate Minister Adelabu’s assertions and alleged misappropriation of funds earmarked for the power sector, particularly the N32 billion allocated for the provision of three million prepaid meters in 2003.
