The House of Representatives Committee on Finance on Tuesday queried the justification for the N705 billion proposed by the Nigerian Bulk Electricity Trading Company (NBET) as subsidy payment for electricity tariff in 2025, urging the agency to stay action on it.

Chairman of the House Committee on Finance, James Faleke (APC Lagos), gave the directive during NBET’s 2025 budget defence.

Faleke challenged the Acting Managing Director of NBET, Johnson Akinnawo, on why the federal government should keep paying for these subsidies from the taxpayers’ money and yet, tariffs remain high.

He observed that N450 billion was paid as electricity subsidy last year, the same year a significant tariff increase for those on Band A was also effected.

Faleke wondered why N705 billion should go for subsidy on electricity tariff this year again, despite the fact Nigerians on Band A are paying heavily on electricity.

He said further action on the proposed subsidy provisions in the budget will be put on hold, adding that there was a need to hold sessions with the Nigerian Electricity Regulatory Commission (NERC) and NBET to iron out things on the matter.

Earlier, NBET’s acting DG, Akinnawo, revealed that in 2024, N450 billion was fully released to the agency to meet the obligations of the power reform programme.

He said the sum of N705 billion has been earmarked for subsidy under the power reform programme.

Lydia Jafiya, Permanent Secretary of the Ministry of Finance, while presenting the budget performance of the ministry, appealed to the committee for a N25 billion increase of the proposed 2025 budget to address the needs of the ministry.

She said a total of N13.5 billion has been proposed as the ministry’s budget for 2025.