The Senate also rejected plans to remove subsidy from electricity given the present hardship in the country.
The decision was made after the upper chambers considered and approved a motion during plenary, sponsored by Senator Aminu Iya Abbas, representing the Adamawa Central zone.
The motion emphasizes the need to preserve the electricity subsidy for the foreseeable future, considering the current challenges Nigerians face.
The federal government had recently stated that sustaining the electricity subsidy had become challenging.
Minister of Power Adebayo Adelabu revealed the government’s difficulty in maintaining the subsidy and emphasized the necessity of transitioning towards a cost-effective tariff model.
He also disclosed significant debts owed by the country to electricity-generating companies and gas companies.
In light of recent events, the Senate opted to advocate for prudence and caution, emphasizing the necessity for thorough deliberation on the socioeconomic consequences before making any decisions regarding the elimination of the electricity subsidy.
Moreover, the Senate has agreed to launch an inquiry into a failed agreement aimed at having local manufacturers produce prepaid meters for nationwide distribution, intending to enhance electricity consumption management.
Additionally, there will be an investigation into the proposed two-trillion naira subsidy, as mentioned by the Minister of Power, aimed at averting a recurrence of the economic challenges associated with the fuel subsidy issue.
As part of these resolutions, the Senate has tasked the power committee with investigating the ministry’s debts totaling ₦1.3 trillion to generating companies and $1.3 billion to gas companies.
The legislators have concurred that the Federal Government should collaborate with the Nigerian Electricity Regulatory Commission (NERC) to devise a sustainable solution for the energy billing system in the country.
Furthermore, they have committed to examining the operations of DisCos to determine the current state of metering, assess their compliance with relevant legal and regulatory frameworks in service delivery, and evaluate the allocation of government funds for widespread pre-paid metering.