Nigerian Govt Can’t Continue To Subsidise Electricity — Power Minister

Abuja, Nigeria– The Minister of Power, Adebayo Adelabu, on Wednesday, says  Nigeria cannot continue to subsidise electricity, adding that the nation must begin to move towards a cost-effective tariff model.

Adelabu stated that the country is currently indebted to the tune of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed gas companies.

The minister, while addressing a press conference in Abuja, said only 450 billion naira was budgeted for subsidy this year but the ministry needs over 2 trillion naira for subsidy.

He said state governments will now be allowed to generate power independently to supply power to their states.

According to him: “On the grid that has collapsed for about six times between December 2023 and now, he said this was caused by shortage of gas, ageing machines in the grid value chain, low capacity to evacuate generated power, and destruction of power stations in some parts of the North-East geopolitical zone of the country.

“The Transmission Company of Nigeria has over 100 abandoned projects due to variations on contract figures as a result of the fluctuations of the forex, hence the company will not award any new contracts till all such projects are completed.

“Over 50 billion naira has been earmarked in the 2024 budget to build mini grids to supply power to remote areas,” he said.

Adelabu added that the electricity distribution companies (DisCos) should sit up otherwise anyone found wanting will have his licence withdrawn.

The minister also said he has reached out to the National Security Adviser, Nuhu Ribadu to help provide security for power infrastructure.