The Minister of Power, Adebayo Adelabu, asserts that Nigeria’s subsidy of electricity cannot persist, stressing the imperative of transitioning towards a cost-effective tariff model.
He highlights the nation’s substantial debt, amounting to 1.3 trillion naira owed to generating companies (GenCos) and 1.3 billion dollars to gas companies.
Adelabu, speaking at a press conference in Abuja on Wednesday, notes that only 450 billion naira was allocated for subsidy this year, falling short of the ministry’s requirement of over 2 trillion naira.
Additionally, he announces a policy shift allowing state governments to independently generate power for their respective states.
Regarding the frequent grid collapses since December 2023, Adelabu attributes these incidents to gas shortages, aging grid infrastructure, inadequate power evacuation capacity, and damage to power stations in certain parts of the North-East geopolitical zone.