Are energy subsidies good for Nigerians?

Whether or not energy subsidies are good for nigerians requires weighing a host of costs and benefits. in the following pages, we look at how energy subsidies benefit different economic classes, impact economic growth and affect environmental sustainability over the short and long terms. 3.1 Who Benefits from Energy Subsidies?

What is Nigeria's power supply project?

The overall objective is to provide reliable electricity to 17.5 million of the 85 million Nigerians who currently lack access to consistent power.

Why are subsidies so expensive in Nigeria?

Given arrears due for 2011, this leaves only ₦431.1 billion (us$2.7 billion) to cover subsidy expenses in 2012. the governor of the central bank of nigeria has predicted that these funds will be exhausted well before the end of the year (brock, 2012). the high cost of subsidies is due in part to corruption.

What is Nigeria's power sector?

Today, the country’s power sector comprises several key actors, including state-owned companies, private entities, and regulatory agencies that work to sustain Nigeria’s power reforms. The Federal Ministry of Power oversees policy formulation and provides overall direction to other agencies within the power sector.

What is the Nigeria Energy Transition Plan?

With the Nigeria Energy Transition Plan, policies and programs are being implemented to shift from diesel and petrol generators to renewable energy sources, enhancing electrification and reducing carbon emissions.

Why is the Nigerian electricity industry starving?

According to the industry regulator, the nigerian electricity regulatory commission (nerc), the failure to make timely payments has starved the utility industry of revenue (ohiare, n.d.). At one point in 2010, a subsidy debt of ₦109 billion (us$0.7 billion) was due to the utility companies (ohiare, n.d.).