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 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed gas companies.
He revealed this while speaking at a press conference in Abuja on Wednesday.
“Only 450 billion naira was budgeted for subsidy this year, but the ministry requires over 2 trillion naira,” he said.
He said that state governments would now have the opportunity to independently generate power for their states.
Addressing the frequent grid collapses experienced since December 2023, Adelabu attributed the issues to gas shortages, aging infrastructure, limited capacity to transmit power, and the destruction of power stations in the North-East geopolitical zone.
He disclosed that the Transmission Company of Nigeria had over 100 abandoned projects due to fluctuating forex rates, halting the awarding of new contracts until existing projects are completed.
Adelabu also revealed plans to allocate over 50 billion naira from the 2024 budget for building mini-grids to supply power to remote areas.
He warned electricity distribution companies (DisCos) to improve their performance.
“Anyone found wanting will have his license withdrawn.”
Additionally, he sought assistance from the National Security Adviser, Nuhu Ribadu, to ensure the security of power infrastructure.