Electricity Subsidy
EKO HOT BLOG reports that the Federal government has said it cannot continue to subsidise electricity for Nigerians.
The Minister of Power, Adebayo Adelabu, stated this on Wednesday while briefing State House correspondents in Abuja.
Adelabu said the poor electricity supply situation in the country was caused by numerous issues including outstanding subsidy debts.
The minister said 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.
According to the minister, over N2 trillion needed for subsidy, only N450 billion was budgeted this year, adding that state governments will now be allowed to generate power independently to supply power to their states.
Electricity Subsidy
On the grid that has collapsed for about six times between December 2023 and now, he said this was caused by 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.
He said the Transmission Company of Nigeria has over 100 abandoned projects due to variations on contract figures as a result of the fluctuations of the forex, hence the company will not award any new contracts till all such projects are completed.
The minister also said over 50 billion naira has been earmarked in the 2024 budget to build mini grids to supply power to remote areas.
He said electricity distribution companies (DisCos) should sit up otherwise anyone found wanting will have his licence withdrawn.
The minister also said he has reached out to the National Security Adviser, Nuhu Ribadu, to help provide security for power infrastructure.
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