Minister of Power, Adebayo Adelabu, emphasized that Nigeria can no longer afford to subsidize electricity and needs to switch to a more cost-effective tariff system. He revealed this during a press briefing on Wednesday, February 14, highlighting the country’s substantial debts to Generating Companies (GenCos) and gas suppliers.
Adelabu stated that the Ministry requires over N2 trillion for subsidies, while only N450 billion was allocated this year. To address power shortages, State Governments will be permitted to generate electricity independently for their respective states.
He attributed recent grid collapses to gas shortages, aging equipment, limited power evacuation capacity, and the destruction of power plants in northeastern Nigeria. Adelabu also noted that the Transmission Company of Nigeria (TCN) has numerous unfinished projects due to fluctuating contract costs, leading to a halt in issuing new contracts until ongoing projects are completed.
Moreover, he disclosed that the 2024 budget includes over N50 billion for constructing small grids to supply electricity to remote areas.
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