FG Can’t Continue To Subsidise Electricity — Power Minister

Nigeria cannot continue to subsidise electricity, according to Minister of Power Adebayo Adelabu. He also stated that the country needs to start moving towards a tariff model that is cost-effective, given that it currently owes $1.3 billion to gas companies and N1.3 trillion to generating companies (GenCos).

At a press conference on Wednesday in Abuja, Adelabu stated that although the ministry needs over N2 trillion in subsidies this year, only 450 billion naira have been budgeted for them.

He declared that in order to provide power to their states, state governments would now be permitted to generate power on their own.

He said that the reasons behind the approximately six grid collapses that have occurred since December 2023 are a lack of gas, ageing machinery in the grid value chain, a limited ability to evacuate generated power, and the destruction of power plants in certain areas of the country's northeastern geopolitical zone.

According to him, the Transmission Company of Nigeria has more than 100 unfinished projects because of changes in contract amounts brought on by currency fluctuations. As a result, the company won't award any new contracts until all of these projects are finished.

The minister added that more than N50 billion had been set aside in the 2024 budget to construct mini-grids that would provide electricity to isolated regions.

Electricity distribution companies (DisCos), according to him, ought to sit up otherwise anyone found wanting will have his licence withdrawn.

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