FG CAN NO LONGER SUBSIDIZE ELECTRICITY

The Minister of Power, Adebayo Adelabu, says Nigeria cannot continue to subsidise electricity, adding that the nation must begin to move towards a cost-effective tariff model, as the country is currently indebted to the tune of N1.3 trillion to generating companies (GenCos) and $1.3 billion owed gas companies.

Adelabu addressed a press conference in Abuja on Wednesday and said only 450 billion naira was budgeted for subsidy this year but the ministry needs over N2 trillion for it.

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

On the grid that has collapsed about six times between December 2023 and now, he said this was caused by a 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.