The Minister of Power, Adebayo Adelabu, has stated that Nigeria cannot continue to subsidise electricity, and that the country must begin to transition to a cost-effective tariff model, as the country is currently owed N1.3 trillion to generating companies (GenCos) and $1.3 billion to gas companies.
Adelabu told a press conference in Abuja on Wednesday that just 450 billion naira had been allotted for subsidies this year, despite the fact that the ministry requires more than N2 trillion in subsidies.
He stated that state governments will now be able to generate power independently to supply power to their respective states.
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 N50 billion 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He said electricity distribution companies (DisCos) should sit up otherwise anyone found wanting will have his licence withdrawn.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.
