Energy Markets
Nigeria reduces electricity subsidies by 35% following tariff hike
Adebayo Adelabu, the Power Minister, announced on Thursday that Nigeria had achieved a reduction of 35% in electricity subsidies after a tariff hike implemented last year. This has eased some pressure on the public finances in Africa’s most populous country. Nigeria's power industry is burdened with a failing grid. Gas shortages, high credit and vandalism are also major problems. Many rely on expensive generators. Because the existing electricity tariffs weren't commercially viable, Nigeria spent nearly 200 billion Naira ($125.01 millions) per month on subsidies. Last year, the government eliminated subsidies for 15% of customers who were classified as heavy users....