The Minister of Power, Adebayo Adelabu, has said the Federal Government is unable to sustain electricity subsidies.
Adelabo advocates for transitioning to a cost-effective tariff model, citing the nation’s debts of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed to gas companies.
He, said this while addressing correspondents in Abuja on Wednesday, February 14, stating that only 450 billion naira was budgeted for subsidy this year but the ministry needs over 2 trillion naira for subsidy.
He added that the state governments will now be allowed to generate and supply power independently to their 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 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He said electricity distribution companies (DisCos) should sit up otherwise anyone found wanting will have his licence withdrawn.
