Energy
FG can’t continue to subsidize electricity — Minister of Power
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.
Adelabu, addressed a press conference in Abuja on Wednesday, said only 450 billion naira was budgeted for subsidy this year but the ministry needs over 2 trillion naira for subsidy.
He said state governments will now be allowed to generate power independently to supply power 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.
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