Minister of Power, Adebayo Adelabu, has emphasized the need for Nigeria to adopt a cost-effective tariff model, stating that the country can no longer sustain subsidizing electricity. Speaking at a press briefing on February 14, Adelabu disclosed that the country owes Generating Companies (GenCos) N1.3 trillion and gas companies $1.3 billion.
He mentioned that the Ministry requires over N2 trillion for subsidy, as only N450 billion was allocated to subsidy this year. Additionally, Adelabu announced that State Governments will be permitted to generate power independently to supply electricity to their states.
Adelabu attributed the six grid collapses recorded since December 2023 to factors such as gas shortages, aging equipment in the grid value chain, limited capacity to evacuate generated power, and the destruction of power plants in certain areas of the nation’s northeastern geopolitical zone.
Regarding the Transmission Company of Nigeria (TCN), Adelabu stated that over 100 projects remain unfinished due to differences in contract figures caused by fluctuations in forex rates. Consequently, the company will not issue any new contracts until all ongoing projects are completed.
The Minister also revealed that the 2024 budget has allocated over N50 billion for the construction of small grids to provide electricity to isolated locations.
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